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An Update from Robinhood’s Founders

blog.robinhood.com

181–190 of 295 posts

Re: An Update from Robinhood’s Founders

#181

Earlier quoted context omitted.

> The fact that they can't offer any compensation might be a big problem for them, since they already have zero trading fees Robinhood makes the most money than any known firm on Wall Street by getting paid specifically to leak user's trades to other traders. SEC requires a periodic report on that which shows compensation. Can't believe people are still buying Robinhood's pitch of misdirection.

Is there a source you can cite for that? Why would anyone want retail investor order data? Especially since most of their orders execute immediately, so you can just get the trade data from the venue...

Rule 606 disclosure for the source. And it's not about the trade data it's the order itself. Second link is a very thorough explanation.

https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%2...

https://www.google.com/url?sa=t&source=web&rct=j&url=http://...

Re: An Update from Robinhood’s Founders

#182

Earlier quoted context omitted.

On the other hand, they've had plenty of time and resources to do just that in a reliable fashion, it's not like it's one guy in his bedroom (I hope!). It's not like they are volunteers doing this open source for the community, they are getting paid (very well, I assume) to run the system. And Management is getting paid (even better, I assume) to make sure the priorities are right and correct decisions are taken. "Wh…

Can you give me a concrete example of a massive distributed system that has zero downtime? Because the largest distributed system I have seen and worked on was at Apple (or maybe DFP at Google) - and even though they had some of the smartest people in the world and literally billions of dollars behind them, there were still an endless list of problems and downtime events. Spoiler alert: It doesn't exist.

Google doesn’t target zero downtime. The marginal cost is too high. For important services (like Search page and ads) they aim for 5 nines uptime (99.999%), which translates to 5 minutes of downtime per year.

https://en.m.wikipedia.org/wiki/High_availability

Re: An Update from Robinhood’s Founders

#183

Earlier quoted context omitted.

Can you give me a concrete example of a massive distributed system that has zero downtime? Because the largest distributed system I have seen and worked on was at Apple (or maybe DFP at Google) - and even though they had some of the smartest people in the world and literally billions of dollars behind them, there were still an endless list of problems and downtime events. Spoiler alert: It doesn't exist.

The point isn't that "a system cannot fail", the point is "if the system fails, it's no big deal, shit happens, cut them some slack" is a weird way to look at it for corporate systems, especially in sensitive areas. If you're running a HA system and you only need one nine to express your availability percentage, sure, sure, you have the smartest people etc and you're doing such a great job, and yeah, yeah, show me on…

It didn't say it's no big deal, you're extrapolating and exaggerating my words because your argument is weak.

My point was that failure is inevitable in any complex system, and I was responding to the parents point that he immediately pointed the finger at management in an accusatory way, and I was saying that's not constructive.

Also your point "They expect to be paid" is actually implicitly "I expect management do do their best to pay me" - there could be a failure in the payroll system, there could be a failure in the banks, there could be many reasons outside managements control that means I'm not getting paid. I can say "why don't you have redundant payroll systems" (which is a stupid waste of resources given the cost/benefit/low failure rate) But my point is again - complex systems have failures - and SOMETIMES, JUST SOMETIMES, YOU CAN CUT THEM SOME SLACK.

Re: An Update from Robinhood’s Founders

#184

Earlier quoted context omitted.

Is this your first day of trading or something? People lose money in trading all the time, for hundreds of reasons and some of those reasons are infrastructure downtime. If your risk profile doesn't reflect that, maybe you should take your money out of trading altogether.

I carry reasonable investment balances - I’m not an active trader but in this space I expect availability. I’d never put my money on RH - and this has nothing to do w risk profile

[deleted]

Re: An Update from Robinhood’s Founders

#185

Earlier quoted context omitted.

Can you give me a concrete example of a massive distributed system that has zero downtime? Because the largest distributed system I have seen and worked on was at Apple (or maybe DFP at Google) - and even though they had some of the smartest people in the world and literally billions of dollars behind them, there were still an endless list of problems and downtime events. Spoiler alert: It doesn't exist.

Google doesn’t target zero downtime. The marginal cost is too high. For important services (like Search page and ads) they aim for 5 nines uptime (99.999%), which translates to 5 minutes of downtime per year. https://en.m.wikipedia.org/wiki/High_availability

I know, I worked there for 3 years on million node clusters

Re: An Update from Robinhood’s Founders

#187

Earlier quoted context omitted.

Sometimes you just have to cut them some slack. Have you engineered a highly available cluster before? I'm not talking about the hot-standby postgres master that gets called on once every 2 years, but I'm talking about a 180 node Cassandra cluster thats doing 15,000 writes a second 24/7 and peaking at 60,000 writes a second every day, and you have to do node replacements every week or two because of the high load. Or…

It is not about scale, it is about the fact that people lost real money. If you can’t make it work you should not be in that business, and I don’t really care how hard they work. I’m taking my account off their platform.

Nearly every online brokerage has had an outage or outages in the past.

Re: An Update from Robinhood’s Founders

#188

Earlier quoted context omitted.

It is not about scale, it is about the fact that people lost real money. If you can’t make it work you should not be in that business, and I don’t really care how hard they work. I’m taking my account off their platform.

Nearly every online brokerage has had an outage or outages in the past.

For a full day + morning and issued non apology? Also, I prefer to be with the group that is not in the “nearly all” one

Re: An Update from Robinhood’s Founders

#189
post #106

On the profession side of this, if you're an engineer at RH in the thick of this - many have been there. It seems dire now, but in a few years the fog, panic, and haze of no sleep will become a story you tell your peers at happy hour. Many will cast stones - but they have been there too. If they haven't, well maybe their day will also come. You may feel bad at the moment - but the best way professionally forward is "…

This is all true for a company that is actually pushing any boundaries as opposed to failing pathetically at a well solved problem.

Robinhood opened up stock trading to a large portion of the population that would otherwise not have been interested in traditional trading platforms with high commissions.

Their success helped to pressure companies such as TD and Schwab to mostly get rid of commissions as well, which is great for the average trader

I think Robinhood has a lot of problems, but to say they're not pushing any boundaries ignores the huge changes they've brought to the industry.

Re: An Update from Robinhood’s Founders

#190

Earlier quoted context omitted.

Trust me, please trust me, you really really really want to be paying a competent broker when trading options. If it's chump change you're trading, sure, use RH. If it's serious money, the $0.65/contract or whatever pays for itself many times over. Even if it's just the ability to regularly get filled between the spread it pays for itself.

I've always been told trading, but especially trading options, is asking the big boys to take your money.

It's not at all so straightforward. There's definitely money to be made trading.

In particular, there's plenty of opportunity to find a successful strategy that just doesn't scale. It won't make you rich but it will make you money.

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