Discussion in 'Trading' started by monstimal, Aug 1, 2012.
Rumors that an algo at Knight went crazy this morning thus all the crazy volume and price moves of the first 30 minutes today.
Nothing really new - an algo found a way around/through the automated pre-trade checks. Whether this was intentional, or accidental, remains TBD.
If you can't control your algo, you deserve to lose money IMO.
"If you can't control your algo, you deserve to lose money IMO."
If you can't control your ego, you deserve to lose money IMO
Wonder how they will sort this out though. Considering this algo prob spit out hundreds and millions of orders throughout those 30 odd minutes, it will be tough to break or adjust these trades!
Either way, a firm like this should have risk controls in place for something like this!
The real crime here is that the SEC is busting trades. Why?
Busting trades is the real reason the market loses confidence in the system.
Last quarter earnings: ~$3m
One day loss: ~$440m
They're not busting all of them.
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