On a Friday night in February 2018, the temperature in Shanghai dropped to freezing temperatures, and the cold wind swept across the Huangpu River.
In addition to tourists on the Bund, the cold did not stop the enthusiasm for bitcoin, blockchain and the wealth they represent.Survey from Nanjing East Road subway station, walk close to the Bund, every Friday there will be A group of people here frantically discuss bitcoin, blockchain, ICO tremendous wealth opportunities.
Not long ago, bitcoin slipped all the way to the top of the market after it topped $ 20,000 and turned down on February 6. The bitcoin fell below $ 6,000 on Feb. 6, declining by 25% in 24 hours. However, Not affected by such pessimism, they were still reluctant to leave at ten o'clock at night.
Here brought together from the stock, foreign exchange, futures trader, 24 hours +0 trading rules, these technologies as if the fish swim into the sea, the use of programs, began to make money in the field of bitcoin and digital money crazy.
01, arbitrage platform, half a year 300 times earnings
Money never sleeps.
Bitcoin, it seems, can naturally ignite the fire of desperation for financial transactions: big enough market capitalization, 24-hour trading, selection of any number of exchanges, and some A-share IT staff involved in such transactions.
Chun Xiao born 80 years (a pseudonym) is such a keen trading person.
During his first ten-year career as a senior IT engineer, he worked as a software company for the first time, and the stock index futures trading software, which he wrote, was mainly offered to futures traders in China.
This software comes with wind control system, once popular in the country, the hottest time, 6% of the stock index futures traders will use it every day.
In 2015, the history of the A-share market, the daily turnover of Shanghai and Shenzhen stock markets daily turnover from several hundred billion yuan to one trillion yuan, the highest breakthrough 2 trillion yuan. Along with the stock market ups and downs, Hang Seng Electronics HOMS sub- In that year a war fame.
During the same period, similar HOMS system software began to appear on the market, when the private placement split the accounts into different sub-accounts, and at the same time they were able to allocate capital.
Chunxiao saw such a fortune opportunity as he joined R & D-driven software-like smart warehouse system startup boom, but the plan ended abruptly in July 2015. The HOMS system was banned due to the A-share stock market crash. The stock index Futures trading was suspended immediately.
After the stock market crash, Chun Xiao was forced to close the project and continue to develop several trading APPs, but failed due to the market downturn.
In February 2017, Chun's wife urged him to work, and when he was on his no-frills journey, he found fanatical bitcoin trading and arbitrage: first, bitcoin prices were not the same across major exchanges; second, bits Money fluctuates daily.
To this end, he developed a set of automatic high-frequency trading software based on these two features, this set of automatic software, automatically buy the lowest bitcoin, reselling to the most expensive platform users.As of September 2017, just 7 months time, relying on automatic trading arbitrage, he has earned 100 million from the cost of 2 million.
Regardless of bitcoin up or down, as long as there is this trading system in, spring dawn will be able to salvage, muffled rich.
In December last year, his money was up to 6 million yuan, and in less than a year, he relied on automatic trading funds to double 300 times.
'As long as the greater volatility, he will earn more.' Chunxiao friend Qiuhai (a pseudonym) laments, this set of trading software, mainly from various digital currency trading platform arbitrage.
By the beginning of this year, Chunxiao had begun to take charge of the funds of more than 40 million of his friends, which enabled him to withdraw funds from bitcoin transactions 24 hours a day, 24 hours a day, day and night.
The story of Chunxiao is not the case, as more and more Chinese financial professionals are participating in the Bitcoin automated trading.
Qiuhai is an investor in Chunxiao Venture Project.Although the project before Chunxiao failed, he saw a huge opportunity brought by Bitcoin and even digital currency automatic trading.
02, programmatic trading, money-making machines?
In the fall of the years, A-shares thought of James H. Simons, founder of the hedge fund Renaissance Technologies.
The 81-year-old is hailed as one of the founders of the most successful hedge funds.
According to data released by the U.S. "Alpha" magazine: In 2005 and 2006, Simmons settled the throne of the world's most profitable hedge fund managers with a net income of 1.5 billion U.S. dollars and 1.7 billion U.S. dollars respectively. In 2007, Simons ranked fifth with 1.3 billion U.S. dollars. In 2008, Simmons topped the list with a record of 2.5 billion U.S. dollars. Soros was the fourth country with only 1.1 billion U.S. dollars recorded.
The Medallion Fund, the flagship product of the Renaissance technology company founded by Simmons, was established in March 1988 and stopped accepting new funds by the time the size of the fund reached $ 270 million in 1993.
Since 1988, the Medal Fund's annual rate of return has been as high as 34%. This figure is 10 percentage points higher than the average annual return of investment gurus such as Soros, up from the annual average rate of return of the S & P 500 over the same period More than 20 percentage points higher than Warren Buffett's average rate of return over the past 20 years 18 percentage points.
Into 2017, AI technology by leaps and bounds, is reforming the asset management industry.
In 2017, BlackRock Inc, the world's largest asset manager, announced that it will restructure its active fund business and plan to eliminate a group of proactive fund managers and replace it with a quantitative investment strategy.
According to the BlackRock restructuring plan, about 40 active fund department staff will be laid off, including seven portfolio managers.
The restructuring plan involves 30 billion US dollars of assets, accounting for about 11% of the size of the BlackRock initiative funds, of which 6 billion will be incorporated into the group's BlackRock Advantage Fund, which invests mainly in computer and mathematical models of quantitative investment strategy.
Qiuhai is a 80-share A-share investor and currently has its own private equity firm with over a decade of A-share stocks, bonds and gold trading experience.
His asset management scale from 1.4 billion to 100 million yuan, he still does not meet the asset management growth rate and earnings.
'The stock market crash in 2015 was miserable,' said Qiuhai frankly, who believes that technology will change the asset management industry. He has been engaged in the investment in smart asset management, intelligent trading and looking for a good company. He hopes that whatever the market may change, Make money in the market, and this, need machines.
Chiu Hai set up a company overseas and recruit IT technology development blockchain technology and he hopes to raise hundreds of millions of dollars to raise money through the ICO to develop intelligent digital currency trading system.
'With so many overseas trading locks and the launch of the new ICO project that the volume is needed, the machines I developed can solve these problems.' Qiuhai seems confident that it will be able to automate overseas digital currency transactions.
Good companies, such as Ming Hong, Kun Kun, Magic Square, Chess Sword and other domestic quantitative trading systems, did not get into this field, which gave the opportunity. "In his eyes, governments in all countries suppressed bitcoin transactions, Good opportunity for his development.
03, Chinese and foreign quantitative funds fight
However, Qiuhai did not pay attention to the technical strength of the United States across the Taiwan Strait.
In Shanghai, a senior person engaged in futures quantitative trading and research, introduced in the field of futures program trading, overseas investors relatively early contact time, the technology is more mature, the domestic start relatively late, but this year the progress is rapid, the more More and more agencies will try to quantify the use of analysis and trading.
Due to the current T-1 trading mechanism of domestic A-shares, there is not much possibility of using programmed high-frequency trading in the stock market. However, due to the different trading mechanisms, the high-frequency trading of computers has been fully developed.
As early as 2008, only a handful of domestic investors were likely to use programmed transactions, and the percentage of programmed transactions has been rapidly rising, with a large number of institutional and individual traders adopting computer programs for futures trading.
As quantitative transactions are generated entirely from models and large amounts of data analysis, of course, the speed of trading can also be the key to winning. For many years, Wall Street has seen a quantum leap forward in its quantitative trading, both in software and hardware, ahead of domestic technology.
'Quantitative transactions on Wall Street have been developing for many years and are much higher than the domestic quantitative fund technology. When overseas quantitative funds enter, domestic quantitative funds have basically become leeks.' It is often difficult for programmed transactions to oscillate in the market Make money, in the unilateral trend market are big profits.
The above sources, the programmatic transactions in all markets have fully demonstrated, bitcoin transactions is no exception.
In the United States across the Atlantic, some financial institutions are starting to engage in Bitcoin transactions, and in China more financial techs smell the taste of wealth.
Intelligent digital currency trading, China's contention has started.