My Side Job is a Trader

Zhang Xin retorted: "You just had an obscene expression on your face. You can't let me misunderstand you. How dare you despise me?"

"I'll let you take a look at what I've been researching recently, so that you can learn a lot."

Wang Shen pretended to be mysterious and said.

The two found a chair on the side of the road, and Wang Shen searched for nearby hotels on his mobile phone.

"Damn, are the hotels within one kilometer nearby so expensive? Five or six hundred a night? This is comparable to the price of a star hotel."

"Then why don't you go to a five-star hotel? After all, you are also a rich second generation, and you still care about such a small amount of money?"

"Fart, my money didn't come from the wind. It's just to find a place to sleep. As long as it's not messy, there's internet and hot water, you can sleep anywhere you want."

Wang Shen was busy looking for a hotel, Zhang Xin had nothing to do, so he habitually took out his mobile phone to check the news.

"Finally found a hotel with an acceptable price, let's go, let's walk slowly, it's only 1.5 kilometers away."

Zhang Xin put away his mobile phone, and the two followed the navigation. After walking for more than half an hour, they finally arrived at their destination.

After checking in, the two found the room and lay down on the bed.

After the soreness in their legs disappeared, the two of them charged their phones at the same time.

Wang Shen took out his notebook and motioned Zhang Xin to get closer to him.

Zhang Xin was very curious about what Wang Shen wanted him to see.

After a short operation, Wang Shen opened the market software and trading software.

Seeing that the interface was all in English, Zhang Xin was at a loss.

"This is a gold plate. I'll use gold to demonstrate later." Wang Shen seemed to see Zhang Xin's confusion, and took the initiative to explain to him.

"By the way, there seems to be no formal platform in our country to make international varieties such as gold?"

"Yes, but I completed the transaction through a third-party platform."

"Third-party platform? Is the fund safe and reliable? Don't go to the last platform to take your money away."

Wang Shen stopped what he was doing, looked at Zhang Xin, and said, "It seems that I need to add some financial knowledge to you."

"The knowledge we have learned before is the domestic financial transaction system, and there is another transaction system abroad, which is very different from ours.

In foreign countries, where individuals operate stock transactions, they do not complete the transactions directly on the exchanges, but complete the transactions on the brokerage platform where they open their accounts.

In other words, there is a VAM transaction between stockholders and brokerage firms. The stocks you buy are not sold to you by other stockholders, but sold to you by your brokerage firm.

So the money you earn is what your brokerage firm loses to you. The more you earn, the more your brokerage firm loses. This is the market maker system. "

Zhang Xin has never been in contact with foreign financial transactions. He always thought that the domestic and foreign trading systems are the same.

"The stockholders made money, wouldn't the market makers die at a loss?"

"You are stupid. If someone can be a market maker, there is no need to doubt his strength. And do you think that a market maker will really lose money? Don't you know that there is an operation in the financial market called hedging transaction? People have already passed on the risk. Not only won’t you lose money, but you can also earn a handling fee.”

Zhang Xin raised the question in his heart: "Then, wouldn't a market maker make a steady profit?"

"This is true in theory, but there are always surprises. Sometimes some market makers do not hedge in order to obtain more profits. Instead, they do the opposite. If the market does not go in the direction of shareholders, then In addition to getting the funds lost by stockholders, market makers will also make another profit of the same amount in the market.

However, there are surprises in everything. No matter how good an analyst is, there will be times when he stumbles. Once the market is wrong, the market maker may lose double the funds. "

After Wang Shen's explanation, Zhang Xin understood the market maker system.

"Then the platform you opened your account with is also a market maker?"

"Of course, so I don't have to worry too much about the safety of funds at all, unless the platform goes bankrupt. If that's the case, I can only admit it."

Since the market maker system is not recognized in China, once the platform goes bankrupt, Wang Shen has no way to report the case to the police. He can only pin his hopes on the business reputation of the market maker behind the platform.

Seeing that Zhang Xin had no more questions, Wang Shen continued to operate the computer.

After a few minutes, Wang Shen shouted excitedly: "It's done, you will check my account later."

Then Wang Shen opened the code editor, clicked to run one of the files, and a magical thing happened: Wang Shen did not perform any operations, but Wang Shen’s account actually performed a purchase operation, and then performed it again a few seconds later. After selling, in just a few minutes, the account completed more than a dozen transactions.

"Automatic trading?"

Although Zhang Xin has heard of trading through programs, it is the first time he has seen it with his own eyes.

Wang Shen stopped the program with a proud face, and said braggingly: "How is it? Is it shocking? Did it open up a new world?"

Zhang Xin recovered from his astonishment, and said, "Awesome, you haven't learned programming, but you can write code scripts?"

"Ha! How can I write code? I asked for this code from someone else, and then modified it to make it work. It looks good so far, at least there is no crash."

"That's amazing. I don't know the python language either. You can come up with a code that can run normally. It's already amazing."

"The focus of the simulated market operation just now was not automatic trading, but in just a few minutes, I completed more than a dozen trading operations, and then you can look at the profit and loss of the account funds."

Zhang Xin opened Wang Shen's demo account, and found that although the dozen or so transactions just now had some losses and some profits, they were still profitable in the end. Although not much, they were still profitable after all.

"How? What do you see?"

Zhang Xin was thoughtful, looking at more than a dozen transactions, suddenly remembered a trading method he had heard before.

"Quantitative trading?"

Although Zhang Xin was asking, his tone was very certain.

"YES, that's right. This is quantitative trading, and it's something I've been studying recently."

Wang Shen showed pride on his face.

"So you are going to do quantitative trading in the future?"

"I have such an idea, but I'm still experimenting. After all, the trading strategy needs to be perfected. It's impossible to make the program buy and sell non-stop, right? It's estimated that you won't make any money, and you may lose a lot of money." A handling fee."

Zhang Xin thought about it, and it is indeed the case. As long as there is a transaction, whether it is stocks or gold, the account opening platform will be charged a handling fee. If there are dozens or hundreds of transactions a day, the handling fee is a lot of money.

"This is one of the costs of quantitative trading, so I need to adjust and perfect the trading strategy and set some conditions. Only when the conditions I set are fully met, the program will complete the transaction. A good trading strategy must at least ensure that the probability of my profitable transaction exceeds 51%, if the handling fee is included in the loss, it means that the probability of a profitable transaction must exceed 55% or even higher, so that I can guarantee the overall profit.”