Next Crisis: "High-Frequency Algorithmic Trading Will Destabilize Market"

Do any of you like Gladiator movies?


Or speak jive?

<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/bfDCRAtODa0&hl=en&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/bfDCRAtODa0&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
 
Quote from Kassz007:

Why anyone would take a vacation to Turkey is beyond me.
More...

One of the best diving and kitesurfing destinations in the world. Plus lots of eastern european women in summer
 
Quote from NY0BScalper:

This guy doesn't argue his point or explain HOW HF trading would destabilize the market, just "everyone is doing it so it can all unwind" and "I'm not sure adding liquidity helps," and "stocks used to be about long term value, not short term blips." He doesn't explain in a cause-effect way why it's a bad thing.

Stupid article.
More...

agree
 
Quote from ByLoSellHi:

You're Back!!! You're Back!!!!!!!!!!!!!!!!


Initiating Ultrashort Positions Immediately!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
More...

Don't be so quick to pull the trigger, maybe he's learned something from losing his life savings in SPY Calls that should have lasted more than a month.
 
Quote from NY0BScalper:

This guy doesn't argue his point or explain HOW HF trading would destabilize the market, just "everyone is doing it so it can all unwind" and "I'm not sure adding liquidity helps," and "stocks used to be about long term value, not short term blips." He doesn't explain in a cause-effect way why it's a bad thing.

Stupid article.
More...

I think the point being made is that "people" (and that includes many here on this forum) are trading "by technicals." You read it here all of the time - just follow the markets and that is how to make money in this market. I think the point is that by "just following technicals" there will be a day that the people "just following technicals" will be burnt real badly - the market will drop and they will be left holding the bag. BTW - I am NOT faulting or disrespecting the people saying to "follow the technicals and not the fundamentals" - to me it seems to be the way to make money NOW - but watch out in the future...this situation won't last forever!

MY THOUGHTs (plus a buck will get you a coffee) is that the markets are COMPLETELY manipulated right now - think : PPT (maybe allowed through GS and SLP). The volumes are very light these days - all the easier to manipulate, but once (as above stated) that money flows back into the markets...the sh!t will hit the fan and we could see some major drops. (Just my $0.02 - if worth even that :D )

-gastropod
 
Quote from ER9:

well if you have many HFT computers trading with different owners....i find it hard to beleive they all use the same algorythym to trade. shouldn't through the laws of random mathmatics they create a neutral sort of balance negating their overall effect to a large degree?
More...

I got from the the article that he said most algos used by companies are geniric and all are based on black scholes in one way or the other. . Its bascially the same difference between coke and pepsi.
 
Quote from ipatent:

Technicals don't mean anything when Goldman's computer can make the market do whatever Goldman wants it to do.
More...

You guys and your "conspiracy" theories give Goldman waaaaaaay to much credit.

First off, there are others out there such as Citadel
(a buy-side firm) that is just as big, if not bigger a "player" in this area.

Secondly, Goldman's revenues from high frequency algorithmic trading is only 1%.

I find that people that embrace "conspiracy" theories are usually the one's that missed a big market move ( such as the rally off the March lows ) and seek to someone to "blame" for their inability to make money.
 
You must log in or register to reply here.
Back
Top