inside
An insider's view of the work of financial management companies: personal experience and secret strategies
The inner workings of asset management firms are nearly identical worldwide
Early in my career, I had the privilege of working at a major asset management company, where I gained invaluable experience and learned the non-public aspects of institutional investing (the kind that dominates financial markets).
What I saw from the inside completely changed my understanding of how markets function and how big money moves.
Now, years later, I’ve decided to share these insights and reveal some of the strategies that usually stay behind the curtain.
Now, years later, I’ve decided to share these insights and reveal some of the strategies that usually stay behind the curtain.
The Reality of Big Money
Retail investors often have a naive view of how major trading decisions are made. The reality is far more complex—and fascinating—than it appears from the outside.
Every move, every large transaction, is the result of meticulously planned multi-step strategies. First comes the plan, then execution. When you’re dealing with huge sums, risk assessment and insurance are non-negotiable.
What impressed me most was how systematic and disciplined capital management truly is. There’s no room for emotional decisions or gut feelings (common among retail traders)—everything is based on complex algorithms, multi-layered analysis, and strict adherence to strategy. There’s always a Plan B, C, D, and beyond.
Now, let’s dive into the specific strategies I observed firsthand.
Retail investors often have a naive view of how major trading decisions are made. The reality is far more complex—and fascinating—than it appears from the outside.
Every move, every large transaction, is the result of meticulously planned multi-step strategies. First comes the plan, then execution. When you’re dealing with huge sums, risk assessment and insurance are non-negotiable.
What impressed me most was how systematic and disciplined capital management truly is. There’s no room for emotional decisions or gut feelings (common among retail traders)—everything is based on complex algorithms, multi-layered analysis, and strict adherence to strategy. There’s always a Plan B, C, D, and beyond.
Now, let’s dive into the specific strategies I observed firsthand.
Manipulative Tactics (The "Bread and Butter" of Big Players)
One of the first things I learned was order masking.
When we traded positions worth millions of dollars, the golden rule was: never reveal the full size of your order to the market. Large orders were always split into dozens, sometimes hundreds, of smaller trades. Iceberg orders? Child’s play in comparison.
The splitting algorithm wasn’t simple—it was an art form. Timing, price levels, liquidity—everything had to be optimized. I even wrote my own Lua script (embedded in the Quik terminal) to automate this. To my knowledge, that algorithm was still in use years after I left.
One of the first things I learned was order masking.
When we traded positions worth millions of dollars, the golden rule was: never reveal the full size of your order to the market. Large orders were always split into dozens, sometimes hundreds, of smaller trades. Iceberg orders? Child’s play in comparison.
The splitting algorithm wasn’t simple—it was an art form. Timing, price levels, liquidity—everything had to be optimized. I even wrote my own Lua script (embedded in the Quik terminal) to automate this. To my knowledge, that algorithm was still in use years after I left.
The Art of "Order Walls"
Another tactic was creating fake support/resistance levels.
We’d place a massive buy order just below the market price, creating the illusion of strong demand. Retail traders would jump in, thinking they were riding a wave—only for us to pull the order and trigger a sharp drop.
We had an entire team dedicated to analyzing stop-loss clusters across the market. They could pinpoint where retail traders had placed their stops—and engineer a cascade of liquidations when needed.
Another tactic was creating fake support/resistance levels.
We’d place a massive buy order just below the market price, creating the illusion of strong demand. Retail traders would jump in, thinking they were riding a wave—only for us to pull the order and trigger a sharp drop.
We had an entire team dedicated to analyzing stop-loss clusters across the market. They could pinpoint where retail traders had placed their stops—and engineer a cascade of liquidations when needed.
Liquidity Squeezes
The most effective plays happened during low-liquidity periods.
With just a few well-placed orders, we could move prices significantly in our desired direction. By faking demand below the spread, we made assets appear "hot," while already holding the positions we needed.
Eventually, we automated this too. The manual version was brutally intense—I still remember my fingers cramping from spamming Ctrl+D (order cancel shortcuts).
The most effective plays happened during low-liquidity periods.
With just a few well-placed orders, we could move prices significantly in our desired direction. By faking demand below the spread, we made assets appear "hot," while already holding the positions we needed.
Eventually, we automated this too. The manual version was brutally intense—I still remember my fingers cramping from spamming Ctrl+D (order cancel shortcuts).
Optimization: The Real Game
Over time, my role shifted toward process optimization. I’d walk between traders’ desks, studying their methods, looking for inefficiencies to streamline.
By dissecting their strategies, I developed an intuitive grasp of market mechanics. You might think this was unique to one firm—but no. Later, I worked with major banks (some under 25-year NDAs) and even foreign hedge funds.
The conclusion? Markets are the same everywhere. These tactics don’t change—not over years, not over decades. And they likely never will.
Over time, my role shifted toward process optimization. I’d walk between traders’ desks, studying their methods, looking for inefficiencies to streamline.
By dissecting their strategies, I developed an intuitive grasp of market mechanics. You might think this was unique to one firm—but no. Later, I worked with major banks (some under 25-year NDAs) and even foreign hedge funds.
The conclusion? Markets are the same everywhere. These tactics don’t change—not over years, not over decades. And they likely never will.
Final Thoughts
This isn’t about "exposing" the system—it’s about understanding how it really works. Retail traders often fight an asymmetric battle, unaware of the structural advantages institutional players have.
But knowledge is power. The more you learn, the better you can adapt—or even exploit—these mechanisms yourself.
What surprises you most about how big money operates?
This isn’t about "exposing" the system—it’s about understanding how it really works. Retail traders often fight an asymmetric battle, unaware of the structural advantages institutional players have.
But knowledge is power. The more you learn, the better you can adapt—or even exploit—these mechanisms yourself.
What surprises you most about how big money operates?
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