I'm in the county town, and you say I'm a big shot?

Chapter 752 A Capital Battle Surrounding the Brexit Referendum
“Yes, so you need to adjust the model parameters to deal with this kind of unexpected situation,” Fang Qingye said.

Although Wei Xinghua's team has upgraded the quantitative trading software "QuantPulse" to version QP4.0 and it has become very mature after several years of operation, it is still insufficient to cope with unexpected situations in the stock market.

This is actually a common problem in so-called quantitative trading. In extreme cases, it is like a black hole in physics, where all formulas, theorems, and parameter constants become invalid.

Wei Xinghua frowned upon hearing this: "This is indeed a problem, but whether the referendum passes or not will have completely different effects on the stock market. We also can't figure out whether those British people support or oppose Brexit?"

"According to online reports, based on current public opinion and polls, the majority of people still oppose Brexit," Bai Ou interjected.

“I think so too,” Wei Xinghua nodded.

“Let’s just go with the prediction that Brexit will pass,” Fang Qingye replied.

"Huh? Why did you come to that conclusion?" The two women looked at him with surprise.

Fang Qingye said in a serious tone, "It was predicted by an old monk at Nanxin Dinghui Temple who was very accurate in fortune telling. Bai Ou knows that."

"Nonsense! That old monk's predictions for Xiaoli's marriage were all wrong. He said she and Dahai would be a good match, but what happened?!" Bai Ou muttered.

Oh my goodness. It's been years already. Song Dahai and Chen Meimei are married with kids old enough to run errands, and Qian Xiaoli has found her true love, growing closer with Xie Lidong, an engineer at Tomorrow Cube. You actually still remember this?!
Fang Qingye then said, "Just kidding, Dr. Wei. Just make your predictions based on Brexit and adjust your models accordingly."

"Chairman Fang, you said it yourself. If the prediction is wrong, the loss won't be just tens or hundreds of thousands of yuan, but hundreds of millions or even billions of yuan," Wei Xinghua reminded her.

"I know, do as I say." Fang Qingye's tone was gentle but her attitude was firm.

"Alright then." Although Wei Xinghua had some doubts, she had to do as instructed.

"Alright, I have to get back to work now. As you said, we need to adjust the software parameters to analyze and predict the trends of several major stock markets, and we also need to make large-scale portfolio adjustments," Wei Xinghua said, turning and going into her office.

Since she was at Tomorrow Cube, Fang Qingye went to check out the AI ​​large model R&D area of ​​Zhou Shengxuan and his team in Model Group 2.

The investment hasn't yielded much result yet, but Fang Qingye isn't in a hurry.

Fang Qingye wandered around to Zhiyun Technology, Baofutong Payment Technology Company, and Hengrong Digital Technology on the 28th floor. He didn't really have anything to do, so he just came to take a look. Fang Qingye felt like a lion surveying its territory.
After spending three days in Shanghai, Fang Qingye took Yue Kai to Hong Kong. At four o'clock in the afternoon, the plane landed at Hong Kong International Airport as the sun was setting.

Fang Qingye and Yue Kai carried their suitcases through customs and arrived at the departure hall, where they saw Ouyang Shaoqiang waiting.

“I told you before, Ouyang, you don’t need to come to pick me up in person. Just send someone.”

“How can that be? Mr. Fang is in Hong Kong, of course I have to pick him up personally.” Ouyang Shaoqiang said, helping Fang Qingye with her suitcase as they left the waiting hall.

After getting into an Audi, Ouyang Shaoqiang, sitting in the passenger seat, turned to Fang Qingye and said, "Chairman Fang, just like last time, arrange for you to stay at the Oriental Mandarin Hotel. After you settle in, we'll prepare a welcome banquet for you tonight."

"Try to drink less this time," Fang Qingye reminded her.

"Okay, now the employees all know your drinking capacity, so they won't dare to offer you any more drinks," Ouyang Shaoqiang said with a smile.

The last time Fang Qingye came to Hong Kong was mainly because Xin Tiejun of Zhiyun Technology was attending a fintech summit. Fang Qingye personally came to Hong Kong to "protect" him, but he ended up drinking too much at the welcome party hosted by Tuofang Fund.

"Ouyang, you need to hurry up with the investment portfolio adjustment," Fang Qingye said, remembering the important matter at hand.

Before telling Wei Xinghua of Tomorrow Cube, he had already called Ouyang Shaoqiang to predict the outcome of the UK's Brexit referendum.

"We've already started a large-scale portfolio adjustment as you predicted, mainly by shorting the pound sterling on a massive scale in the futures market!" Actually, what's even more ruthless is buying put options—that's even more lucrative!
For example, consider options at seemingly unattainable levels like 1.3500 and 1.3400 (GBP/USD exchange rate). At the time, the spot price was above 1.46, making these options extremely cheap because they were "extremely out-of-the-money."

However, after the referendum results were announced, the pound plummeted to 1.3200!

These waste papers turned into gold overnight!
Fang Qingye had already calculated that a £100,000 contract, with a cost of only $500, could be sold for over $10,000 in the market at this moment. The return exceeded 2000%!

But Fang Qingye didn't dare to do that.

That's insane, it's inhuman.

No one believed the pound would fall so drastically, even with the referendum passing. I couldn't be an exception.
Let's follow Ouyang Shaoqiang's advice and stick to futures trading.

Safety first.

Thinking of this, he warned, "You all need to be careful. Tuofang Fund is now a key target of CFIUS (Committee on Foreign Investment in the United States) and is being watched by those financial giants on Wall Street. Don't make any mistakes!"

“We will operate cautiously, in accordance with all transaction rules, and this transaction will be conducted through companies we control in the British Virgin Islands and the Cayman Islands,” Ouyang Shaoqiang said confidently.

It turns out that ever since Fang Qingye learned that Tuofang Fund had become a key target of CFIUS and a thorn in the side of Wall Street giants, he discussed with Ouyang Shaoqiang and decided that the funds would no longer be transferred directly from Hong Kong, but instead a complex fund flow would be designed. This is what Ouyang Shaoqiang meant.

"This time, our funds will depart from Hong Kong in batches and will not directly enter the London market. They will first be injected into our Series A shell companies registered in the British Virgin Islands. These companies act as the first veil, effectively cutting off direct traceability of the funds' ultimate source. Subsequently, the funds will undergo several seemingly unrelated internal transfers and hedging among these BVI companies before finally being transferred to the 'operational entity' located in the Cayman Islands, which has actual trading authority. Of course, this may not be able to hide from the monitoring of top Wall Street investment banks, but it is better than leaving Tuofang Fund completely exposed to them."

Fang Qingye nodded after hearing this.

Playing with money in Hong Kong is great.

Would you dare to do this in mainland China?
Some time ago, Goldman Sachs set a trap for Jinghai Bank and three other companies. Fang Qingye noticed the trap as soon as the funds were transferred out and investigated it thoroughly.

Of course, every advantage has its disadvantages.

Fang Qingye arrived at the hotel, checked in, rested for a while, and then went to have dinner with Ouyang Shaoqiang.

Just as Fang Qingye and the executives of Tuofang Fund were enjoying drinks at the upscale restaurant of the Oriental Mandarin Oriental, a warning signal suddenly came from the risk monitoring department of Goldman Sachs headquarters on Wall Street in New York, across the Pacific Ocean.

The warning signal came from Goldman Sachs' own "Sentinel" system.

This is not a metaphor, but its official code name. It is a complex, proprietary algorithm monitoring network with only one core mission: to scan every large transaction on major global exchanges and over-the-counter trading platforms in real time, and to identify any "abnormal fund flows" that deviate from normal market patterns through hundreds of pre-set behavioral models.

Sentinel doesn't concern itself with macroeconomics or predict the future. It focuses solely on facts—the size, direction, speed, correlation, and anonymity of trades. By comparing historical trading patterns, real-time market liquidity, and cross-asset class correlations, it outlines the behavioral profiles of "shark" investors who attempt to hide their tracks.

At this moment, Goldman Sachs CRO (Chief Risk Officer) Sophia Chen is standing in front of the "Sentinel" global dashboard.

Suddenly, an alert called "Stealth Position Building" was triggered, at a level of "Amber - Level 2". This indicates that the system has identified a group of related accounts that are accumulating positions in a specific asset in a consistent direction through complex trade splitting, and that their coordination exceeds the threshold of random fluctuations.

“John, you’d better take a look at this,” Sophia called to John Wald, the president and chief operating officer, who was about to leave. “The Sentinel system has caught a bunch of ghosts in the pound.”

John approached, and the screen clearly displayed the analysis results from the Sentinel system: more than twenty accounts distributed across different offshore centers had executed thousands of small transactions in the near-term GBP/USD contract over the past few days. Individually, each transaction would be insignificant, but the Sentinel's aggregation algorithm identified them as the same logical entity, achieving a behavioral consistency rate of 92.4%.

"Where did the funding come from?" John asked immediately, his intuition telling him that this was unusual.

(End of this chapter)