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

Discussion in 'Wall St. News' started by ByLoSellHi, Jul 29, 2009.

  1. Do any of you like Gladiator movies?


    Or speak jive?

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    #11     Jul 29, 2009
  2. One of the best diving and kitesurfing destinations in the world. Plus lots of eastern european women in summer
     
    #12     Jul 30, 2009
  3. agree
     
    #13     Jul 31, 2009
  4. You're Back!!! You're Back!!!!!!!!!!!!!!!!


    Initiating Ultrashort Positions Immediately!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
     
    #14     Aug 1, 2009
  5. 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.
     
    #15     Aug 1, 2009
  6. 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
     
    #16     Aug 1, 2009
  7. ipatent

    ipatent

    Technicals don't mean anything when Goldman's computer can make the market do whatever Goldman wants it to do.
     
    #17     Aug 1, 2009
  8. subban

    subban

    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.
     
    #18     Aug 1, 2009
  9. subban

    subban

    Ohhhhhhhhhhh Billllllyyyyyyyyyy
     
    #19     Aug 1, 2009
  10. 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.
     
    #20     Aug 1, 2009