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A comment on FTX Tapped into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall. Parent comment

Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by itsdrewmiller on Thursday November 10, 2022 @01:53PM (#33551296)
The original comment addresses that concern:

>Why in the absence of any positive evidence, like "oh here is our genius but nonetheless expired" trading strategy, which anyone could have furnished in the last two decades, they agree, oh it must be real?

I agree that there should be some obviously awesome things these funds did that they can share now given they are no longer able to exploit them. I have no idea if they have done so and I and GP are just not aware of it.

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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by jeffreyrogers on Thursday November 10, 2022 @02:50PM (#33552146)
There are known expired strategies that generated large profits for long periods of time. In some cases the people involved in developing the strategies have directly published things explaining what they did.
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by taliesinb on Thursday November 10, 2022 @03:24PM (#33552742)
I'd be fascinated to read these published things if anyone can point to them!
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by jeffreyrogers on Thursday November 10, 2022 @03:37PM (#33552944)
The books and articles by Ed Thorpe are a good place to start.
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by 121789 on Thursday November 10, 2022 @03:23PM (#33552724)
Do you have any examples? Would be interested to read sone
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by elijaht on Thursday November 10, 2022 @04:26PM (#33553630)
Article mentions one (bitcoin arbitrage)
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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by tych0 on Thursday November 10, 2022 @03:28PM (#33552801)
And at least in SBF/Alameda's case, they did, and you can google it. IIUC it was basic arbitrage, the hard part was figuring out how to interface with Japan's banks.

Maybe the guy is a bad dude, I don't have a horse in that race. But lots of trading strategies that have worked in the past are well known.

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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by espadrine on Thursday November 10, 2022 @03:48PM (#33553106)
That is part of it. The Sequoia piece[0] describes what kicked off Alameda Research: after a tumultuous hard fork, there used to be a discrepancy between the price of Bitcoin in JPY at a Japanese exchange, and that in a US exchange. So he opened a Japanese account, bought a bitcoin in the US for a low price, and sold it in Japan for a high price.

To be clear, it is described by SBF. I haven’t verified historical prices to confirm it. The journalist that wrote this article probably hasn’t either.

[0]: https://web.archive.org/web/20221110141739/https://www.sequo...

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Re:FTX Tapped into Customer Accounts to Fund Risky Bets, Set... by peyton on Thursday November 10, 2022 @05:57PM (#33554839)
He claims to have been wiring $25m a day from a BoA branch to banks in rural Japan. Total horseshit.
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