Lokesh Madan Lokesh Madan is a strategy business consultant for various high frequency trading companies worldwide with more than 12 years of experience in financial technology, research work and business development

My HFT Trading Story : LOKESH MADAN

1 min read

For me, having 15 Years experienced HFT & Quant Based Solutions & Fund management person, which I also enjoyed immensely, the market offered an opportunity to test myself and to prove I could generate economic profits for clients. A harsh meritocracy also has its advantages if you enjoy the daily challenge.

The majority of the managers that I have met have a sarcastic and self-deprecatory sense of humors and a fighting spirit, hardened by many strokes of bad luck, blunders and also successes. We try to laugh at one another a little. I should admit that most of the criticism and ironic comments fall first on us.

Comments of the following type can be heard: “Why are the markets rising?” “Because this morning I made some negative predictions, it always works” or “Why are the markets falling?” “Someone has just come back from a round of golf and is selling” and “Because I bought this morning.” When oil prices fall, someone will ironically comment: “Who was the one that wrote a bullish email?”

 
We also laugh at ourselves when we are having a bad day on the markets. I remember remarks such as: “Looks like my longs are going to bail out Greece” and “Right, with a capital increase.” Or when announcements are made to bail out countries:

“My portfolio is having a recession in my longs and bailing out my shorts.”

One of the key things we learn is not to talk about “paper portfolios” (online portfolios where we include our best ideas to see how they would perform, but without investing real money) as they always work phenomenally.

When we put them into practice with real money, however, many of these portfolios barely last three months. I have seen dozens of workers laid off who promised spectacular returns from their online portfolios.

It’s easy to handle Monopoly money, because there is no risk.

It’s another ball game altogether when you play with hard cash.

It’s important to remember that we must not take ourselves too seriously and believe we are geniuses. There will always be someone much smarter, more sprightly and better prepared than you in another investment fund. Strong criticism from your own friends when success goes to your head, as well as their support when things are not going well, is essential to survival in this world.

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Lokesh Madan

Lokesh Madan Lokesh Madan is a strategy business consultant for various high frequency trading companies worldwide with more than 12 years of experience in financial technology, research work and business development

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One Reply to “My HFT Trading Story : LOKESH MADAN”

  1. Hi Lokesh

    Awesome article! Flash crash is one of the wonderful day in my trading life, It’s was a hardcore time for europe,Extreme macro reports spreaded on my desk,Our Order Books Balance Sheet and everything was normal.of course bearish sentiment,Uncertainty was constantly shifting market expectations. Then the equity market began to fall rapidly, dropping an additional 600 points in 5 minutes for an almost 1000 point loss on the day by 2:47 pm. Twenty minutes later, by 3:07 pm, the market had gained most of the 600 point drop. Some of my colleagues were shouting sell orders and running all the way Up and down throughout the building. Few experienced folks stayed calm and cool, while others started drawing analogies to 1987 Crash. We got a message from our department head indicating that trading is closed for prop firms and issue is getting larger scale which may prompt SEC to take wide actions. But me and couple of my friends were bidding through OTC dark pools, then the next 2 days created a massive piecemeal profit for us.

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