Legendary Traders: How they made $660 million in one day outsmarting Wall Street

If you are wondering how to make the big money as a trader in financial markets, you have come to the right place. Surely, grinding out a couple of points from the S&P500 Future each day is not what gets you there.

In our first episode of Legendary Traders we will introduce you to the underdog traders of Vega Capital who have earned more than $660 million in April 2020, when the May contract of West Texas Intermediate, WTI Crude Oil Futures went negative for the first time in history.

Senior trader is Paul Commins, nickname ‘Cuddles’, who was a floor trader at London’s International Petroleum Exchange in the good old days when trading was still a full contact sport in the pit and political correctness was not invented yet.

His team was a mix of experienced traders and newcomers in their 20s. One of them was the veteran pit trader Chris Roase called “Dog”. The rest of the team consisted of Elliot Pickering, 25 who likes driving fast cars, Connor Younger, 22 who is the son of a building contractor and Aristos Demetriou, 31 called “Ari”, as well as some neighbourhood kids.

It is rumoured that prior to his engagement with Vega, Ari was working in a supermarket pushing shopping carts when he met Dog, driving by in his posh car. He got the job when he started a conversation with Dog by asking him how he could afford such fancy car.

On this trade, the group used primarily the Trade at Settlement “TAS” execution option which allowed them to buy WTI Crude Oil Futures for the prize wherever the market will be at settlement. They then sold that position immediately in the market.

Taking on the TAS order does not have a market impact because it only gets filled at settlement. But their hedge positions, selling the same contract did.

Therefore that strategy gave them an asymmetric edge. Further they traded the spread by selling the May contract and buying the June contract which in addition put pressure on the May contract.

Hope this video gives you some insights on the trading method they applied. Also you can see the exact movement minute by minute when the WTI Crude Oil Future went negative.

We tried to show and explain all the details in an entertaining fashion. Even though we tried to make it as accurate as possible, please do not trade anything based on this without learning first everything you need to know about trading.

Hope you will enjoy this video. Please leave us your comments down below.

Thank you very much and all the very best to you.

Resources: Shutterstock, Envato Elements and Storyblocks. News and Webpages with links are in the video.

Read the full story: https://www.bloomberg.com/news/features/2020-12-10/stock-market-when-oil-when-negative-these-essex-traders-pounced

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Disclaimer: The content of this video is fictional and for entertainment purposes only. All characters, scenarios or world views are set in a fictional multiverse. Any resemblance to real persons, living or dead, real events or the real world is purely coincidental.

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