G-BOT Project
Algorithmic Trading - Hedge Fund Automated Management
Methodologies and Platform

- G-BOT Platform screenshots  and manual
- Due diligence, performance assessment, copy request,  wealth management

For a practical illustration of hedging techniques and methodologies, follow our current explanatory thread:

Project description

G-BOT is very active a scientific project, directed by Tom Gastaldi (currently professor at the first University of Rome"La Sapienza"), who has created both the platform and the concepts on which it is based, that is nonpredictively exploting a "statistical drift" created by player superposition and layer overlay.
The project is concerned with the the study of trading algorithms and
fully automated strategies for systematic profitability and it is also discussed in public trading forums with fund managers, investors, etc.

These strategies and algorithms are also incorporated in an actual
platform (an autotrading application) for automated management of large funds, also called G-BOT, which applies them to entire folios, that can formed by any type of financial instrument (fut, fop, stk, opt, cash, cfd, ind: see example file).

With G-BOT, even one single (experienced and smart) individual can control, from a single laptop, a large offshore fund (say from several hundred millions up to billions) possibly distributed on simultaneous multiple accounts, from any location in the world. Further, he can do that while on the move, or quickly relocate the entire management function to another location (as far as there is Internet connectivity). Just a few key strategic decisions, and the rest is just pure and full automation.

G-BOT applies and lets you apply all the tenets of portfolio/investment management to large folios of financial instruments, such as: folio selection (right instrument), size calibration (right size), instrument correlations (this is related with the previous point, as we do not want to invest too much on essentially the "same price moves") hedging, option hedging, opportunity selection (right time and price), capital reallocation across new or better opportunities).
One of the most neat form of investment that is conceivable (operate from any offshore location, no setup costs, no risk of collection, no shipping, no property and employment taxes, no trade union, beat inflation, hedge currency risk, realtime monitoring to the penny, full control on investment development).


Nonpredictive, statistical approach

G-BOT does a massive mechanical scalping/hedging action (with a nonpredictive kernel), constantly creating a positive "statistical drift", and mechanically pulling the buy/sell averages to realize a "crossover", operating on large folios across any mkt, while, at the same time, hedging and turning cointegrations (or "codirections") in its favor.
It manages all aspects of complex folios, including folio recalibration, cointegrations and hedging through option configurations ("scalping corridors").
(Note that when we use the word "scalp" or "scalping game" we are not necessarily referring to the capture of small price changes, but the term "scalping" is used in a generalized sense.)

Being based on sound statistical concepts and purely "mechanical" action, high frequency and large numbers, it requires very good capital and it is by no means targeted to small retails traders, but to large private investors and funds.

As you dig deeper in the G-BOT concepts, it will be clear that it is not simply a "platform" for folio management (actually the best out there). If you need a "trading platform", there are hundreds of them out there which can help you. G-BOT comes, instead, with a precise concept and a unique vision, and you either understand and embrace it, or you are wasting your time.

Be fully aware that both this concept and application is targeted to: fund management and large private investors with appropriate "risk capital". It is not suitable for small accounts. Not suitable for FX traders. Not suitable for inexperienced traders or managers. In general, if you are in the category of the people thinking that you are going to quickly get rich by trading, this is definitely not for you. G-BOT is rather suitable for managing an allocation of "risk capital", an investments within a diversified allocation scheme, and there is where it can provide maximum return results.

[This is a collection of some metrics also used by G-BOT (which also computes realtime correlations).]
For due diligence and copy request, see below. For installation or quick start: Manual. Manual

If you like to discuss algorithmic trading ideas and methodologies, do not forget to join the great Linkedin group:
"Algorithmic Trading for Real Traders and Funds ": http://www.linkedin.com/groups?gid=4394344&trk=hb_side_g"

Example of scalping on a long only constraint (real account):

Scalping GASL

Private distribution for due diligence (on paper trading)

We are currently giving the opportunity, to possibly interested fund managers/private investors with good "risk capital", to test the G-BOT platform and associated concepts on their own local computers. In fact, we follow a transparent approach, thus embracing the integrity and full disclosure of the scientific method.

One purpose of this (free) service is to provide large investors with a concrete and transparent opportunity of independently evaluating functionalities and strategy performances on their own machines, in order to determine whether they are ready to trade real money with G-BOT, and to adequately familiarize with the new opportunities that G-BOT offers. See here for some notes about strategy.
(Another purpose is also to provide researchers and Phd candidates or professional traders with a tool to explore and publish novel papers on the concept of "strategic dominance through preservation and use of past trading information" .)

You must realize that most of the performance profiles that are publicized out there are just "made up" and totally fake, even when it is claimed that they are "audited" [common deceptions include: forgery, selective reporting, trading multiple small accounts (and showing only the ones which were successful), money laundering, etc.]: for this reason, we do not believe in making nonsense claims. We know as a fact that G-BOT is, comparatively and in the right hands, an exceptional performer, but we think it is pointeless to make performance claims, and prefer let you personally assess the reality in full trasparency. On the other hand, a significant part of the system behavior on large folios is also to be imputed to capital, fund manager skills, and intelligence (understanding of the reason for edge and the "mechanics" of hedging), as life teaches that there are always discretionary and psychological aspects which can largely affect outcomes and make the difference from fail and success.

G-BOT is not licensed and not for sale, but, instead, an (informal) "agreement" based on a negotiable bonus may be proposed to the interested funds or traders/investors with good capital. G-BOT is initially enabled to trade live, in automatic mode, on paper trading accounts only. For cautionary reasons, a mandatory paper trading period is enforced in any case. [Attempt to trade real money when not "enabled" yet will cause the program to switch into "manual mode". In manual mode, it can also trade real accounts, thus allowing testing actual execution.]
Use of the system in automatic mode with real money on local machines is granted only to fund managers/investors with enough "risk capital" (see here for details).

How to request to be included in the "private distribution"

If you are interested in testing G-BOT funtionalities and assessing performances on your own machines running the IB Gateway (or TWS), just send us (DataTimeSRL@gmail.com) a "G-BOT request" via email with the following mandatory information (that will be hardcoded in your executable):

    - Your name, city and country (for program personalization). Your Skype ID (optional: for realtime support and interaction).
    - MAC addresses of the PCs (or virtual boxes) you wish to use
      [if you are unsure how to find it, read here or just use this tiny .NET utility "FindMAC" we have made it just to this purpose: it will display your MAC addresses]

Restrictions: who can apply

Please understand that, at the current stage, we have a more strict policy, and we are currently restricting the distribution to funds and good (in the sense of sufficient risk capital) and experienced investors, so that we can be strongly focused and serve better those who are equipped to actually succeed, and generate profits for themselves and our project. When making the request, please provide (unless it is for stricly academical purposes) an approximate indication of your "risk capital" in case of future use on real trading account. At this time the applicants can only be:

- Financial professionals or large investors, with intent to put it eventually at work with good risk capital, clearly if their quality check and due diligence is appropriately fullfilled (see here for some detail on our relationship model with investors)
- Graduate scholar/Professors, for stricly academical or research purposes (paper trading version only), with intent to publish scientific papers or articles on the concept of "strategic dominance through the preservation and use of past trading information", which g-bot proposes.

Note that, due to the large volume of contacts, requests will normally be ignored if (or while) they do not satisfy the above requirements.

For any serious request, a personal (free) copy will be prepared and compiled on purpose. Links to software updates are sent periodically to the investors or fund managers who are included in the "private distribution". You can withdraw your request any time, and all the information about you will be erased.

If you participated in the initial stage of the project and you are not receiving more updates, please, send a new request if complying with the above new requirements.

There are no fees or costs whatsoever involved in the copy request or the due diligence activity.
For Microsoft .Net framework 4.0 or above (tested on Windows XP/Vista/7, 32 or 64 bit). For IB (Interactive Brokers) accounts only.

[Note that we are not associated with Interactive Brokers in any way: we have simply chosen IB as target broker, as at the moment, and as far as we know, it is one of the most serious and suitable broker around. There is also a "technical" reason: G-BOT revolves around the idea of spreading risk across a number of (uncorrelated) instruments. IB is the only broker which offers immediate and simultaneous access to any possible market and instrument through readily available .NET APIs.

Note that, for a preliminary review of G-BOT, an IB account is not necessarily needed and one can start testing G-BOT immediately after installing the IB Gateway (or the TWS, which are a free download) and connecting to the IB " Demo" account (by logging with the well-known universal credentials: "edemo, demouser" or "fdemo, demouser"), although, keep in mind, in that case, that the tickdata sent by IB in the "Demo" mode are "fictitious" (depending on instruments they may be past data or totally meaningless garbage data); anyway still barely usable to understand G-BOT features and approach at a preliminary explorative stage. As an advantage, testing on demo account, you will not be restricted to subscribed markets.]

For any issue or feature request, please feel free to send it to us (DataTimeSRL@gmail.com). Any problem reported is addressed and solved immediately, for inclusion in the next update. Get ready with your skype account to chat real time with any problem or doubt or to suggest improvements. Our skype id: "datatimesrl"

How is G-BOT unique?

When you start using G-BOT, you soon realize that it is totally unique and it stands completely in a category of its own. There are many reasons for that. Let's review the most important ones.

G-BOT is a high precision machine that can trade automatically 24/7 with minimal high-level supervision from the fund manager, but it also provides the appropriate means for discretionary intervention at any degree, when necessary. It incorporates all the technological and methodological tools to test accurately the given logic and assessing exactly the performances and risk capital requirements for each scalping game, with both backtesting (real past tickdata) or forward testing (scientifically generated random scenarios or actual trading).
G-BOT is released to suitable individuals who request being part of the private distribution list, and the fund manager/investor can use it as long as he wishes and freely perform locally, on his machines, any tests and performance assessments for how long he wishes on paper trading, before comitting real funds.

The other "trading platforms" expect the trader to create and implement his own "strategy". G-BOT, on the contrary, provides a robust and fully customizable conceptual architecture that completely frees the trader from such an endless task, providing a working, sensible approach. Thus, it allows the trader to focus on higher level aspects, folio management and risk management, also with possibility of exercising at any time strategic discretionality, within appropriate constraints.

While many platforms provide classical TA "indicators" thus implicitly forcing the trader towards a nonsense "predictive" approach, G-BOT works based on the base assumption that no prediction and that no predictive indicator is used (within the algorithms). This approach leads to a totally different and innovative trading methodology. In fact, the main idea of G-BOT is that of extracting profit from the price curve by creating a "statistical drift" through player superposition, and overlaying multiple "dynamic probabilistic cage" or "order clouds" from which the price curve cannot easily "escape" without realizing a "mechanical" convergenge of the buy/sell avgs. This is implemented at folio level, through an overlay of multiple strategic layers, each one working with a multi-agent logic and hedging each other (player superposition).

On the basis of experience, we have resolved that overlaying layers of instruments and multiple instance is more convenient and safe for several reasons, explained below. Besides, objectively "performances" (in terms of profit to risk ratio) are superior respect to other approaches. Whatever temporary disconnection or infrastructure problem will not be able to hurt significantly the trading mechanism. There are also several other benefits:

   a. Positions will be relatively small and undetected in the market: opening and closing positions will never be a problem (also semi liquid instrument can be traded more effectively).
   b. Risk is modularized and greatly spread through layers. Performances will increase greatly (in relative terms). In fact there will be reciprocal hedging across different layers and folio instances.
   c. Gaps or order execution problems will not hurt the trading activity.
   d. Further, if a large risk capital is available, starting the new folios at different price levels, you will be practically covering all the price range, taking advantage of any price move.
   e. It does not rely on expensive infrastructure and services (such as colocation), and attains much better overall results in terms of reward to risk ratio.
   f. This approach also allows gradually ramping up the invested amount to whatever size, with an optimal money management and risk diversification.

What G-BOT tries to accomplish at any time and with each strategic game is the maximization of the profit to risk ratio, while the absolute risk is to be calibrated by the fund manager, based on strategy, instruments, capital and mkt volatility.

If you think about it, most platforms - which are licensed and expect the user to define his own strategy - are just the result of a long unsuccessful quest for algorithmic profitability. As the authors were not able to find systematically profitable strategies, they had no other choice than to try profiting from program licensing or sales. Clearly, you can expect that if a strategist was not able of being profitable with his own software, it is very unlikely, if not totally impossible, that a simple user, with the same software, will. The problem actually being mostly architectural and conceptual. In fact, when you use a platform, you do not have infinite degrees of freedom, as you might think (even if you were given the most complete language to code with), but you are, instead, limited by the "concepts" and many architectural constraints it implicitly delivers.

You will see that G-BOT is a world in itself: not just a top trading application, but a precise expression of a no-nonsense approach to systematic profitability, with a precise well defined scientific reason for its edge ("preservation and use of the past trading information"). A concentrate of original and new ideas. We work continuously on this project and as soon as any new improvement is found it is incorporated in the next software update (shipped to funds and private investors).

Some selected features of the platform

The platform works at tickdata level, and all data is received, analyzed realtime. Volatility, cointegrations, folio calibration, and several other metrics are computed on the fly. Orders are executed in milliseconds from any overseas location. It performs realtime charting, with visual representation of all orders for all instruments in the folio and provides realtime statistics for the entire folio. A DBMS can also be straightforwardly wired to G-BOT to record accurately and store all the trading activity and orders (for further analysis with other management tools).

It integrates forward testing, "robustness analysis", backtesting, with both past real tickdata and random scenarios for entire folios of instruments. G-BOT supports unique features, such as "player superposition" and "layer overlaying", creating multiple instances of instruments (called "clones" or layers), and multiple instances of the application can be started simultaneously on several (possibly "linked") accounts, or on the same account, from one single machine. It can safely handle any interruption or infrastructure problem.

G-BOT can recover from any crash or resume from any interruption, and it is a bullet proof application, designed to stay up 24/7, even forever, trading automatically large folios of financial instruments. It provides facilities suitable to estimate the risk capital necessary to trade a given portfolio, depending on scalping games and profit objectives.  With G-BOT you can trade any instrument, in any market, worldwide. G-BOT is expressly designed to trade simultaneously one or multiple folios of instruments, on one or multiple accounts, and supports all possible functions at folio level, including backtesting with real past tickdata and forward testing and robustness analysis under mutating random scenarios.

G-BOT is not suitable for the amateur trader or the small investor. In fact, it is designed for systematic creation of wealth on a large scale and it requires significant "risk capital" and also good trading skills, experience and intelligence. Natural users are, therefore, bright fund managers, experienced and intelligent traders working for large private investors, funds, or reputable institutions.

These features are currently unique to G-BOT, which, for the very first time, has introduced and delivered such innovative concepts:

High specialized client for IB (Interactive Brokers), allows realtime control to the penny for any number of simultaneous instruments (and layers).  
Can trade any instrument (Futures, ETFs, Stocks, Options, Cash, CFDs, etc.) and any mkt  
It creates "player superpositions" for optimal hedging on a single layer  
It allows to create multiple layers with different or equal instruments and with possibly different scalping/hedging games.  
Can trade automatically completely unattended as well as completely in "manual mode" and in mixed modes.  
Can stay up 24/7 forever, with automatic reconnection and alert disconnections, recording all the events occurred.  
Shows realtime tickdata, separately for BID and ASK, allowing a precise control of spread and order prices  
Can trade any number of multiple "linked" account simultaneously from the same machine  
It provides full support for option trading, including the new "mini-options"  
Trade any number of instruments simultaneously (large folios) keeping track of cointegrations ("codirections")  
Handles asynchronously all orders events, taking care of partial fills, cancellations, rejections, presubmissions, etc.  
It carefully prevents later execution of multiple orders  
Allows managing presubmitted, submitted and "stranded" orders remained inactive.  
Holds up any number of distinct G-BOT instances running on different logins (each of which can access any number of liked accounts)  
It automatically prevents any accidental account switching  
Allows order enqueuing for later conditional execution  
Allows automatic take profit based on user conditions  
Can read and execute external orders watching a given order execution list  
Allows the trader to "inject" strategic orders (handled algorithmically by the application)  
Allows any kind of manual intervention or manual trading  
Allows manually (pre)submitting orders (outside of the automatic scalping/hedgin automation)  
Allows both "auto" and "manual" orders and transforming a manual order into an auto player and viceversa  
Allows algorithmic trading on one direction only (long/short) or with various position contraints and "biases"  
Keeps track of real time cointegration matrix to possibly hedge instruments  
Does automatic folio recalibration, based on nominal values and volatilities (exposures)  
Allows easy hedging with options  
Shows extensive real time statistics about any useful aspect of trading, including complete history
of realtime PNL, gain, losses, unrealized, etc.
Keeps track of real time volatility to accordingly scale strategic games  
Keeps accurately track of realtime spread for entries and trading decisions
Allows the user to define mechanical scalping/hedging games by defining custom rules  
Full support for FA (Financial Advisor) accounts.  
Allows each instrument and each layer to have its own specific strategic game and settings  
Supports instrument overlaying (multiple clones of the same instrument can be traded with different strategies) at different price levels and possibly with different strategic games  
Allows player superposition and the scalping/hedging "game rules" can be analytically defined by the user  
Allows managing even individual players (close / deactivation)  
Exports trading reports in txt, Excel and html format with images and visual trade representation  
Allows suspending any instrument with position = 0 (eg., avoid overnight gaps or reallocate capital) with no loss of trading information (player will remain "open")    
Keeps complete log of any activity  
Allows (optional) connection to a DBMS for trade activity recording  
Allows any backtests for folios of any size  
Allows forward test under mutable random scenarios (mkt simulation) for any folio size  
Can generate batteries of random experiments and show the distributions and performances for any strategic game  
Allows forward live test on paper trading accounts, demo accounts, FA demo accounts  
Can show account info of any number of linked accounts  
Can compare account info with instance position (sync check)  
Can backfill any tickdata gap, and can do it separately for BID and ASK  
Allows resetting tickdata while maintaning all orders history and PNL  
Allows removing spikes, outliers both in bid /ask curves and PNL curves  
Allows projecting external positions to be handled within the application, or to re-sync  
Allows easy roll over and automatically adjusts strategy players to possible contango or backwardation  
Allows to deal with stock splits and reverse splits, without disruption of trading activity.  
Provides realtime info about dividends  
Automatic retrieval of complete option chains and corresponding tickers symbols.  
Automatic retrieval of options with strike near current price, for quick creation of "protection units".  
Allows trading instruments and options within the same instance, so that PNL results are aggregated and the hedging effects of the "protection units", formed by the current options, are shown realtime  
Allows creating option units formed by an arbitrary numner of options, even with different expiration dates.  
Allows automatic determination of "option protection units", through quick scan of the entire chain of available options for any instrument  
Allows multiple criteria for "shares identification" (including the common schems FIFO, LIFO) useful for both the fund manager and the tax accountant  

G-BOT trading

Private Investors, funds

G-BOT is now being used for real money trading by funds and large private investors worldwide. The total number of investors (testing or real trading) from all parts of the globe has increased dramatically since we started making public this project. Thus, the need to comply with a large number of different frameworks and fund managers' perspectives and requirements has greatly contributed to the robustness and effectiveness of the platform, as G-BOT incorporates many features requested and observations made by the smartest guys around the world. This is an important growth and stability factor, which allows G-BOT to be constantly over the top.

Apart the funds we manage directly, each fund manager runs it completely independently on his local machines and is obviously completely and solely responsible for any aspect of trading (folio setup, discretionary aspects, hedging style, execution, etc.). Our "relationship model" with our investors is summarized here, and is essentialy based on personal relationship with self-selected interlocutors, who have both the intelligence and the capital to exploit the G-BOT concepts, and systematically print $$$ with it, by taking a substantial, but controlled, risk.

Where in the world is G-BOT used?

We receive requests from all sides of the globe: mostly from financial centers, but also from elsewhere.

 G-Bot World Map

(We could not keep up with adding all the new locations: but you get the idea ...)

Patronage, grants, funding

If you are a science enthusiast interested in algorithmical trading, please put our project in your list, to support its scientific and technological development, for funding research topics, and testing the new trading methodologies which are being developed. Current research areas include:

- "Mechanical" statistical hedging mechanisms and player superposition
- Hedging mechanisms based on option configurations ("corridors")
- Simulation technology (process generation, mixtures, etc.)
- Real money forward testing of specific strategic games
- New platform features development
- and also: new public, full transparent, realtime pilot tests with real money

If interested in supporting this research (either with funds or technology), please write (tommaso.gastaldi@gmail.com)

Startup initiative, investors

G-BOT looks at a future of public company. If you are interested in sponsoring the initiative to this goal, please get in contact.

Marketing and investor relationships

For our hedge fund management project, we are also currently interested (for various geographical areas) in getting in touch with marketing professional in the area of hedge funds and large investor relationships. If interested, please get in touch (datatimesrl@gmail.com).


A G-Bot wallpaper

Download  [1600x1200, use in "stretch" mode]

Links to useful interesting technical articles




http://www.linkedin.com/groups?gid=4394344&trk=hb_side_g     [Algorithmic Trading for Real Traders - LinkedIn]

 Interesting or amusing threads     

http://www.elitetrader.com/vb/showthread.php?s=&threadid=66599&perpage=6&pagenumber=24    "Every forex broker is evil?!"
http://www.elitetrader.com/vb/showthread.php?threadid=171976                                                   "Informal ranking of Chicago prop firms"
http://www.elitetrader.com/vb/showthread.php?s=&threadid=200561&perpage=6&pagenumber=1    "You are more likely to become a top Hollywood actor or popstar than profitable trader"
http://www.elitetrader.com/vb/showthread.php?s=&threadid=199982&perpage=6&pagenumber=1    "Are you smarter than a top M.I.T. Grad?"




http://www.elitetrader.com/br/                             [Broker ratings and opinions]

Investor protection


http://www.forexpeacearmy.com/ terms of reward to risk ratio. http://www.forexpeacearmy.com/







http://www.tradersnarrative.com/list-of-proprietary-trading-firms-735.html                       [Proprietary trading firm directory]
http://investimonials.com/prop-firms/                                                                          [Firm rating]
http://www.elitetrader.com/vb/showthread.php?s=&threadid=212110&perpage=6&pagenumber=6      [discussion on unregulated 3rd party educational vendors]




http://masteroptions.com/?p=3                                                                                [understand options]
  [how to become a CTA]

G-BOT friends

http://www.linkedin.com/groups?gid=4394344&trk=hb_side_g                                   ["Algorithmic Trading for Real Traders" Linkedin group]
http://www.linkedin.com/groups/Interactive-Brokers-Traders-Fund-Managers-4932221  ["Interactive Brokers Traders and Fund Managers" Linkedin group]

We are not in the US, however, it's useful and wise to recall anyway the following:

CFTC Disclaimer
U.S. Government Required Disclaimer

Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All results shown on this website are live paper trading (broker: Interactive Brokers) results. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. Hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. All information on this website is for educational purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold us and any authorized distributors of this information harmless in any and all ways. The use of this website constitutes acceptance of our user agreement. Logos and trademarks are the property of their respective owners.


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