Algo's are pushing every market toward randomness - God help us traders

JTrades · May 13, 2015

jimmiebarton said:
algo's (mathematicians) are pushing every market toward randomness. god help us traders when that process is complete. it's as inevitable as AI is.

Really, that bad?

k p · May 13, 2015

JTrades said:
Really, that bad?

Good idea to start this thread.

My feeling is that if we take out the ability for normal people to trade, there won't be anyone left to take the other side of the trade and hence bleed them dry. You gotta have some good moves in there every now and then to make regular people think they can do this so that they are inspired to try and "donate" to the market.

If markets moved too fast and random, regular people would stay out, and this would change the nature of the market. This would of course require the algos to change, and so on and so forth. But you will still always need suckers to provide the winnings for the few.

tortoise · May 13, 2015

Bullshit. Just buy. What's random about that?

IAS_LLC · May 13, 2015

They are only random to the untrained eye (algo) . The algo's behaviors are anything but random. Human actors have far more random behavior.

tortoise · May 13, 2015

IAS_LLC said:
They are only random to the untrained eye (algo) . The algo's behaviors are anything but random. Human actors have far more random behavior.

The algos make it easier.

So long as their algo behavior doesn't drive you batty, that is.

Take the ES rise from yesterday to this morning. It dropped to the halfway point (2092.75) a few minutes ago. A logical place to go long, if you're so inclined to the countertrend.

With proper risk management, a perfectly valid trade.

What's random about that?

NoDoji · May 13, 2015

k p said:
My feeling is that if we take out the ability for normal people to trade...

Normal people don't trade.

helgen_1 · May 13, 2015

..algo's (mathematicians) are pushing every market toward randomness..

My feeling is the opposite. The way the markets respect levels are at times too good to be true.

H.

jj1111 · May 13, 2015

I agree, the market will become random. But wait; that will imply that those traders that HFT algos feed off of will be wrung dry.. implying that big HFT shops will start liquidating/consolidating.. which might lead to some inefficiencies in the market.. leading further to other participants entering the market..

.. and round and round we go.

k p · May 13, 2015

NoDoji said:
Normal people don't trade.

LOL... so you're abnormal, and I'm abnormal, but you're still the better kind of abnormal because you're basing your trading on statistics and probabilities, and I'm going in circles. Actually, when it comes to abnormal, maybe I am the better type of abnormal because if you're gonna be the opposite of normal, you might as well be crazy and random like me, as opposed to a methodical type of abnormal, like you.

murray t turtle · May 13, 2015

JTrades said:
Really, that bad?

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LOL;Not really that bad;
but I agree with his comment God help us.....[+ trade trends]