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One Algorithm Made Up 4% Of All Trading Last Week, And No One Knows Where It Came From
TBI ^
| 10-8-2012
| Linette Lopez
Posted on 10/08/2012 2:26:11 PM PDT by blam
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To: sheana
... If the orders were put out and then cancelled before executed then there was no trading. Until they are executed they are just orders. How can non executed trades be 4% of the market? Doesn’t make sense.It stands to reason that the trading system must account for all trade activity, whether executed or cancelled. Whoever hired the math wizards that put this together is trying to influence the market and/or profit from another computer's reaction to their feint.
21
posted on
10/08/2012 3:14:39 PM PDT
by
ken in texas
(I was taught to respect my elders but it keeps getting harder to find any.)
To: blam
If you figure out what all this means, let me know : )
22
posted on
10/08/2012 3:55:25 PM PDT
by
stephenjohnbanker
(God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
To: Brad from Tennessee
I may be mistaken, but I believe what was involved in the 1987 crash was simple automated computer trading...the decline levels exceeded the parameters of the programs, and since they had no floors or stops included they just kept selling and fed into the downward spiral.
High-frequency trading that effectively games the exchanges is a comparatively recent phenomenon, within the last few years.
23
posted on
10/08/2012 8:25:22 PM PDT
by
M1903A1
("We shed all that is good and virtuous for that which is shoddy and sleazy... and call it progress")
To: M1903A1
[High-frequency trading that effectively games the exchanges is a comparatively recent phenomenon, within the last few years.]
I understand. I was referring to autonomous computers for trading in general. I remember a year or two ago Goldman went after some Russian national who had designed and patented one of their systems. It incorporated multiple telephone switches. The guy ran off with the schematics and copies of the software. They caught him and he was indicted. But the story gave a glimpse of how these systems could issue then cancel orders in a millisecond.
24
posted on
10/08/2012 8:45:06 PM PDT
by
Brad from Tennessee
(A politician can't give you anything he hasn't first stolen from you.)
To: upchuck
“Agree 100%. This is precisely why I got out of the market forever in very early 2008. Haven’t looked back.”
Let’s talk after a post-Romney victory.... You might miss the biggest jump since WWII. And I mean that!
25
posted on
10/08/2012 9:26:41 PM PDT
by
Bshaw
(A nefarious deceit is upon us all!)
To: Brad from Tennessee
Seems to me that event was what brought HFT to light in the first place.
26
posted on
10/10/2012 11:44:01 AM PDT
by
M1903A1
("We shed all that is good and virtuous for that which is shoddy and sleazy... and call it progress")
To: M1903A1
27
posted on
10/10/2012 12:17:37 PM PDT
by
Brad from Tennessee
(A politician can't give you anything he hasn't first stolen from you.)
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