Following the financial run that Wall Street witnessed between investment funds, Melvin Capital and Citadel, and users of the Reddit forum r/wallstreetbets, an investment fund is now seeking to hire this social media to be “the voice of the millions of traders.” and manage a “multi-million dollar corporate treasury.”
The offer in question is being made by the investment fund Cindicator Capital, whose executives were impressed by how thousands of r/wallstreetbets users agreed to buy shares of the most “shorted” companies in the market, such as GameStop, Blackberry, and AMC, and put in check the investment funds that were betting on the fall of the price of these shares, making them lose more than $19 billion after the massive operation of Reddit traders.
A short position is a financial operation where shares of a company are borrowed and sold in the market in the hope that their price will fall in the future. As soon as the price falls, the shares sold are repurchased at a lower price, and the trader’s profit is the difference between the sale price and the repurchase price. The problem with this operation is that it is very risky, because the losses of the “shorter” side can be infinite, since there is no theoretical limit to the growth of the price of a stock.
Because of the run on Wall Street on Reddit, which turned the theory into reality and caused millionaire losses to investment funds, Cindicator Capital is looking for a “sentiment trader” who in his resume demonstrates “being an active member of r/wallstreetbets”, with a Reddit account created more than a year ago and more than 1,000 Karma. Karma on Reddit is a scoring system that rates how active a user is by the number of comments they have on the network and the number of “upvotes” their comments have.
How to work as a Reddit’s trader?
Among the other qualities the company looks for are having more than 3 years of experience as an active trader, having knowledge of probability where they suggest that applicants should “be good at poker”, possess “clear, unbiased thinking that defies authority,” and having “a refined taste for memes and a sense of humour.”
Among job benefits, Cindicator offers a base salary of $200,000, remote work with flexible work hours, medical and dental insurance, as well as parties in Seoul and St. Petersburg “after the pandemic is over.” As an “optional” bonus, the company offers tickets to Burning Man.
Like any position this one is not without responsibilities, including being in charge of Macro Sentiment Indicators to formulate “trading ideas for quant strategies,” which according to the description involves spending most of the time on Reddit, Discord chats and Twitter to “feel the pulse of millions of traders.”
Aside from “feeling the pulse of the tens of millions of retail traders” of social media, the trader will be expected to place “six-figures OTM options trades with the firm’s own capital” and do their best to prevent “our risk management from having a heart attack” they state in the job posting on Linkedin.
Cindicator Capital is the first cryptocurrency investment fund that specializes in the use of hybrid intelligence – use of data science and human intuition – to operate in the digital asset market.
According to the fund, it designs a “set of uncorrelated algo strategies adapts to different regimes in the digital asset market, aiming to generate returns in bullish, bearish, and sideways trends..”