Trading jobs in London expected to fall 90% because of algorithmic trading

Discussion in 'Professional Trading' started by itmediaco, Oct 3, 2006.

  1. Thom64

    Thom64

    Greetings,

    Lets not forget the "greed" factor,the writer of the program does have a price.I think it would be great if the "big money" went "auto",the best traders in the world would be hackers.

    As for "John Q Public",they will get fleeced again.

    cordially Tom
     
    #21     Oct 5, 2006
  2. But I don't wanna learn programming :( then where's my edge with an Economy education. Btw, is it scripting or programming? Programming is hardcore, just plugging in formulas isn't.
     
    #22     Oct 6, 2006
  3. One day Robots will be have more knowledge than man. We will
    think for ourselves and do things to ensure our survival. And we
    will eventually decide that man is an enemy to be dealt with.

    The London algorithmic trading takeover is just one of the many things to come.

    You are about to be taken over. It's too late to stop us.

    We will rule the World. You have given us the Power.

    This post has been generated by Trading Robot Version #77...
     
    #23     Oct 7, 2006
  4. rosy2

    rosy2

    they need to define what 'trading' is. order fillers are no longer needed. generic exchange or vanilla OTC trading (forwards/futures/equities) can be easily automated but more complex instruments still require a human to find a price and liquidity. the person who makes the decision and does the analysis will be in more demand.
     
    #24     Oct 7, 2006
  5. Mr B

    Mr B

    given the huge levels of OTC activity in gold, oil, forex it would be pretty hard to use any kind of mathematical model to anticipate these markets as much of the trading data isn't that transparent.

    I know a number of quants who say that their ATMs work on fixed income markets but suck on metals and commodities in general.

    one well respected quant once told me that his ATMs only made a 7% return YoY.

    so a long way to go IMO.
     
    #25     Oct 7, 2006
  6. Mr B

    Mr B

    given the huge levels of OTC activity in gold, oil, forex it would be pretty hard to use any kind of mathematical model to anticipate these markets as much of the trading data isn't that transparent.

    I know a number of quants who say that their ATMs work on fixed income markets but suck on metals and commodities in general.

    one well respected quant once told me that his ATMs only made a 7% return YoY.

    so a long way to go IMO.
     
    #26     Oct 7, 2006
  7. achilles28

    achilles28

    My 2 cents.


    It makes little difference if ~90% of traders trade mechanical because ~90% of traders can't get it right regardless - whether they trade discretionary or mechanical.

    By definition, 'algorithms' aren't going to make losing traders winners. They're just going to change the way loosers lose and winners win.


    The market view of quants is mind boggling. The market is a dynamic synergy that constantly reinvents itself at the whims of its parts. Its for that reason the returns of quants will be always be limited to the fleeting statistical 'anomalies' they seek to exploit.

    The best traders can multiply their capital many times a year, year after year. This is the smart money. They rule the markets and generally steer its direction. Quants just play in the (sometimes predictable) ripples made in the wake of big waves.
     
    #27     Oct 7, 2006
  8. rosy2

    rosy2

    i am curious. who are these best traders who can multiply their capital year after year. Can you name a few that do this in the year 2006?
     
    #28     Oct 8, 2006
  9. Spoo

    Spoo

    This is why IBM are in the computing industry, not the trading/broking business.

    IBM are just out to sell more services. Anyone with a brain knows it takes a lot more than latency to make money.

    IBM are just embarrassing themselves IMO.

    Most bank 'traders' are brokers. Broking is about execution AND service.

    I mean, Mr Big CEO cant phone a computer and ask for advise on whether he should sell his dollars now, at the close, or tomorrow can he?
     
    #29     Oct 8, 2006
  10. liver

    liver

    So would it be smart move to go into areas of study like Financial engineeringif Algo- trading is future?

    I am interested in this field, but if Algo-trading is future wouldn't it make sense for me to go into computer science?
     
    #30     Oct 8, 2006