Wall Street traders becoming obsolete as computers become more ruthless than traders.
40 replies, posted
[img]http://news.bbcimg.co.uk/media/images/68566000/jpg/_68566762_robotsindexpicv2copy.jpg[/img]
[quote][B]"Humans cannot compete on speed, it's as simple as that."
[/B]Ten years ago, John Coates was a trader in Wall Street.
Today, he is a neuroscientist at Cambridge University, and spends his days monitoring traders' hormones to see what makes them tick.
"There are simple tests you can do. When you see a green light... you click a mouse. The fastest you can do that is 100 to 120 milliseconds. Any basic cognitive processing, figuring things out, then maybe 200 to 300 milliseconds.
"The trouble is, the boxes - last time I looked - they were processing a trade in 10 milliseconds, and today I think... we're talking about millionths of a second."
Those "boxes" are the robot traders - computers that make their own decisions about when to buy and sell, but a thousand times faster than any human can.[/quote]
[URL]http://www.bbc.co.uk/news/business-23095938[/URL]
Well, at least now we may get a bunch of young technologically literate investors as opposed to the stereotypical grumpy old men.
Fuck Wall Street.
This technology is a few years old, but most old geezers just claim its not reliable and move on.
I also thought this was going to be illegal soon.
Isn't computerized trading on a huge decline?
Yeah...
[URL]http://www.nytimes.com/2012/10/15/business/with-profits-dropping-high-speed-trading-cools-down.html?ref=highfrequencyalgorithmictrading&_r=0[/URL]
And that's from 2012...
[URL="http://www.businessweek.com/articles/2013-06-06/how-the-robots-lost-high-frequency-tradings-rise-and-fall"]http://www.businessweek.com/articles/2013-06-06/how-the-robots-lost-high-frequency-tradings-rise-and-fall
[url]http://www.centives.net/S/2013/the-decline-of-high-frequency-trading/[/url]
[/URL]
-snips-
[QUOTE=Emperorconor;41560966]Why?[/QUOTE]
wall street = the system
don't you know a thing!??
Computers can do this infinitely better than a human because they can do the math a million times faster, so I'm not surprised that a computer can calculate the statistics and sell better than a person.
[QUOTE=Xystus234;41561226]Computers can do this infinitely better than a human because they can do the math a million times faster, so I'm not surprised that a computer can calculate the statistics and sell better than a person.[/QUOTE]
the problems/hilarity arise when there's a bug in that system, though.
[QUOTE=katbug;41561247]the problems/hilarity arise when there's a bug in that system, though.[/QUOTE]
There's multiple issues. Computers don't understand concepts like we do. Sometimes, these systems will perform trades for reasons that we don't understand (they'll find bogus patterns), or they don't know how to handle certain scenarios and it sells all yer shit or whatever.
I for one welcome our new robotic economic overlords.
[QUOTE=Xystus234;41561226]Computers can do this infinitely better than a human because they can do the math a million times faster, so I'm not surprised that a computer can calculate the statistics and sell better than a person.[/QUOTE]
You realize that there are other factors that control stock other than stats right...
[QUOTE=joes33431;41561431]I for one welcome our new robotic economic overlords.[/QUOTE]
My big problem with these computers is that if someone finds a way to break in to them and skew their logic, we have the potential to have a black Tuesday 2.0
[QUOTE=MajorMattem;41560950]Fuck Wall Street.[/QUOTE]
For anyone who didn't get the reference;
[media]http://www.youtube.com/watch?v=6KGWJK5qxrc[/media]
[I]On August 29th, 2013, TradeNet will become self aware. It will utilize large sums of money against Steam and expects Steam to counterattack by lowering the frequency of sales.[/I]
[url=http://www.youtube.com/watch?v=4xryhm6YVhk]It was considered judgement day[/url]
Hmm.
I'm a programmer.
I wonder how hard it would be to learn the market well enough to make an auto-trader.
Best part about using computers instead of humans for trading?
They aren't fucking greedy.
I would imagine a company would want to program a computer broker to be as greedy as possible.
Interestingly enough, there's groups that are interested to keep markets less computerized for more stability.
[url]http://www.ctvnews.ca/business/rbc-barclays-among-backers-for-new-stock-market-to-rival-tsx-1.1340616[/url]
"Now's the time. Sell our stock."
"I'm sorry Dave, I'm afraid I can't do that."
wall street is crazy
[video=youtube;ncpm6vRi9F4]http://www.youtube.com/watch?v=ncpm6vRi9F4[/video]
[QUOTE=joes33431;41561431]I for one welcome our new robotic economic overlords.[/QUOTE]
within six months there will be electronic old men running the world
[QUOTE=chimitos;41562062]Hmm.
I'm a programmer.
I wonder how hard it would be to learn the market well enough to make an auto-trader.[/QUOTE]
very
I never understood how it all worked, from what I'd seen it was a load of people in a crowded hall shouting at each other with handful's of paper while men rush to phones and green screens light up with endlessly scrolling numbers with abbreviations. It looked like madness.
[QUOTE=Foda;41561345]There's multiple issues. Computers don't understand concepts like we do. Sometimes, these systems will perform trades for reasons that we don't understand (they'll find bogus patterns), or they don't know how to handle certain scenarios and it sells all yer shit or whatever.[/QUOTE]
Solution: Have a human moderate all outgoing decisions made by the computer, as a second opinion. I doubt they'd let computers COMPLETELY take control of the situation.
[QUOTE=Joazzz;41563574]within six months there will be electronic old men running the world[/QUOTE]
A new economy!
If some rogue computer AI like skynet pops up and take over Wall Street computers, let me know if there is chaos following it.
[QUOTE=MasterFen006;41563675]Solution: Have a human moderate all outgoing decisions made by the computer, as a second opinion. I doubt they'd let computers COMPLETELY take control of the situation.[/QUOTE]
You're underestimating the horrible combination of greed and stupidity.
[QUOTE=Mabus;41563664]I never understood how it all worked, from what I'd seen it was a load of people in a crowded hall shouting at each other with handful's of paper while men rush to phones and green screens light up with endlessly scrolling numbers with abbreviations. It looked like madness.[/QUOTE]
A trading floor is the very definition of organized chaos.
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