News Traders responding in milliseconds

stock777

stock777

Manual traders , hang it up . It's over. Take up knitting.
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The news can be pretty hard on stock prices.

Announcements about corporate profits (or lack thereof), a change in management, rumors of a merger, even the weather. All these events can cause a company’s share price to move wildly up or down.

Today, the Reuters Group begins selling two trading services that allow subscribers to set up automatic trading orders based on the news. They will give subscribers the ability to mine past and present Reuters news articles in real time and automatically buy, sell or hold a stock based on market-moving events.

The mining and sifting of news take place in computers dedicated to algorithmic trading; that is, automatic buying and selling based on complex mathematical formulas that aim to pick the optimal time to trade a stock.


The rest at
http://www.nytimes.com/2006/12/11/technology/11reuters.html?_r=1&ref=business&oref=slogin
 
I rmember when pricing algorithms had names like 'Dave' and were more likely to be found in the pub across the road than in an airconditioned clean room.

On a serious note, all the more reason to operate below the institutional liquidity threshold.
 
Quote from mokwit:

On a serious note, all the more reason to operate below the institutional liquidity threshold.
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Exactly. That's where small players can prosper.
 
rather silly post. u imply that stocks will not trend and will immediatly find equilibrium and that trading off news is the only way to trade.
 
hmmm. We're talking about the easy money, not the random noise.

There's a lottery winner eventually too, are you recommending we max out out lottery buys as well?
 
I like to see software listening to the first vowel out from Crammer mouth and rapidly deducting it into a stock to trade before he even closes his mouth. Of course the software should be smart enough to buy all 'sound the same' stocks because that is what human is known to do.
 
Until he started making me ill , it was fun watching the Kramer ramps.

Too bad I have digital cable which is delayed about 4 seconds.
 
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