Goldman Sachs' "Random Walk" ROTFLMAO

[PaceAdvantage]

This is simply unreal:

Absolute Perfection: Goldman Loses Money On Just One Trading Day In Q3

The Goldman 10-Q is out, providing numerous interesting datapoints for those willing to scour through them. The key one: Goldman lost money on just one trading day in Q3, making money on all the other 64. As a reminder, even in Q2 Goldman lost money on two trading days. The statistical probability distribution of 1 out of 65 is something that not the SEC, but Richard Feynman should be looking into, as Goldman Sachs, after rewriting the lass of risk/return, is now set to redefine normal distributions and other Statistics 101 concepts.

~~the rest~~
http://www.zerohedge.com/article/absolute-perfection-goldman-loses-money-just-one-trading-day-q3

and a follow-up:

http://www.zerohedge.com/article/another-view-goldmans-trading-perfection-and-statistical-improbabilities

[lamboguy]

i knew a guy tht worked for goldman sachs about 20 years ago, his name was FISHER BLACK. he along with another gentleman by the name of MYRON SCHOALES wrote the options volitility theory that is the gospel behind options trading now. MR> SCHOALES wound up involved with a hedge trading firm by the name of LONG TERM CAPITAL. i remember myron telling me that trading in these markets back then is a scam and its impossible to lose. he had it all figured out until his model failed to work any longer, he wound up blowing up the whole deal and lost billions while they had to get bailed out by the govenment. another to big to fail deal!

at the same time i remember Fisher telling me that it doesn't matter which direction the markets take, its all in the volitility. GOLMAN SACHS now play the volitility of the markets like a fiddle through options double and tripple etf's and other trading vehicles. Goldman Sachs creates the volitility, so they know how to trade in and out of it. in short words, GOLDMAN makes and breaks the game whenever they feel like it. when one makes a trade today you are either on the GOLDMAN side or you are against them. GOLDMAN holds no hostages ever. their job is to separate you from your money. i used to think that the market is always the final arbitrator and no one man makes a market, i am begining to learn that i am as wrong as wrong can be.

[RichieP]

Goldman Sachs creates the volitility, so they know how to trade in and out of it. in short words, GOLDMAN makes and breaks the game whenever they feel like it. when one makes a trade today you are either on the GOLDMAN side or you are against them.

GOLDMAN holds no hostages ever. their job is to separate you from your money. i used to think that the market is always the final arbitrator and no one man makes a market, i am begining to learn that i am as wrong as wrong can be.

Best thing I ever did 2 years ago was get out of all stocks,funds etc and into gold and within last 9 months silver also. Dollar has now begun the inevitable collapse after all the INSANE printing/spending of money by the "Fed". Metals are prepared to head to stratosphere in 24 months.

Trust nobody with your money man. Capitalism run amuck

[Jeff P]

I can look back at several years of carefully kept records that tell me when I'm dialed in... using solid R&D to cherry pick my spots... and completely in the zone with play or pass decision making, ticket structure, and bet sizing - I can reasonably expect to come away with a profit about 72 days out of 100.

That's after devoting half a lifetime to research into what makes horses win, how to properly back an opinion - and creating stat arb models out of what I believe to be the relevant factors.

I'd like to think by now I know a thing or two about what I'm doing - and as the game evolves as it inevitably does over time - that I have the ability to see it evolving and evolve right along with it. Rightly or wrongly I'd like to think I have a full understanding of the market in which I trade.

However, I can't - in my wildest fantasies, imagine being good enough to trade every day for an entire quarter - and reasonably expect to come away with a profit 65 or 66 trading days out of 67.

Man, those boys at Goldman Sachs must be pretty good at what they do. :D

-jp

.

[bigmack]

In 36 of the 65 mind blowing days, GS profit was over $100m and on the remaining 29 fruitful days, 24 had profits over $50m. :eek:

It's all in the timing:

Dealers say GS have made big profits by the timing of Fed purchases of government debt and subsequent Treasury debt sales, and by betting that the relationship between Treasury bonds and other fixed-income securities would normalise.

[ddog]

give it a rest guys, they are doing "GODS WORK" at least that's the way I heard it.

talk about your wealth re distribution. ALL to THEM ALL the TIME.

[lamboguy]

Best thing I ever did 2 years ago was get out of all stocks,funds etc and into gold and within last 9 months silver also. Dollar has now begun the inevitable collapse after all the INSANE printing/spending of money by the "Fed". Metals are prepared to head to stratosphere in 24 months.

Trust nobody with your money man. Capitalism run amucki been playing gold now for a decade, i hate to tell you this but when gold finally does make the big run GOLDMAN will get every last crumb that they can steal from you. my advice is that if you have ever heard of the buy and hold method, you better play that way with gold because otherwise goldman will shake you out and shake you down while this inevitable big run takes place.

[BlueShoe]

However, I can't - in my wildest fantasies, imagine being good enough to trade every day for an entire quarter - and reasonably expect to come away with a profit 65 or 66 trading days out of 67.

Man, those boys at Goldman Sachs must be pretty good at what they do.
Kind of like going to the track every day and only having one or two losing days during the entire meeting.Excuse the cynicism,but could we be seeing Bernie Part II lurking in the background?