A little melodramatic in the title, but this book gives an engaging story of the rise of electronic trading and electronic networks (one lone geek literally took on Wall Street's cronyism and changed the world) up until today's current morass of high speed, high frequency AI bots warring it out with each other.
If there is ever going to be a Judgement Day for the rise of the machines ala The Terminator, I betcha this environment will be its pond scum origins.
http://www.amazon.com/Dark-Pools-High-S ... 0307887170
Dark Pools: High-Speed Traders, A.I. Bandits, and the Threat to the System
Moderator: Global Moderator
-
MachineGhost
- Executive Member
- Posts: 10054
- Joined: Sat Nov 12, 2011 9:31 am
Dark Pools: High-Speed Traders, A.I. Bandits, and the Threat to the System
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Re: Dark Pools: High-Speed Traders, A.I. Bandits, and the Threat to the System
Check out this video of the rise of high frequency trading since 2007. Put on your flame-retardant sunglasses; the action gets brighter and brighter over time.
http://www.nanex.net/aqck/2804.html
http://www.nanex.net/aqck/2804.html
-
notsheigetz
- Executive Member
- Posts: 684
- Joined: Mon Aug 06, 2012 5:18 pm
Re: Dark Pools: High-Speed Traders, A.I. Bandits, and the Threat to the System
Until I invested in the PP I never paid close attention to daily movements in the markets (and now that I have been it long enough I still don't). When I did watch however, I was surprised by the sudden daily swings between the 4 sectors of the PP. I couldn't believe this could be caused by mere human beings making investment decisions. From my own career in software development I know very well that computers can be programmed to make foolish decisions and act on them with lightning speed without fear of consequences so I suspected this was the culprit.
This space available for rent.
-
MachineGhost
- Executive Member
- Posts: 10054
- Joined: Sat Nov 12, 2011 9:31 am
Re: Dark Pools: High-Speed Traders, A.I. Bandits, and the Threat to the System
A good follow-up to this book is Automate This: How Algorithms Came to Rule Our World which broadens out the time frame and industries that algorithms are displacing pesky, inefficient humans full of hubris in.
http://www.amazon.com/Automate-This-Alg ... 591844924/
I find it amazing the first fully automated trading algorithm on Wall Street was first implemented way back in 1977. They used a mechanical contraption to "type" the orders into a NASDAQ terminal as fast as possible to stay legal.
http://www.amazon.com/Automate-This-Alg ... 591844924/
I find it amazing the first fully automated trading algorithm on Wall Street was first implemented way back in 1977. They used a mechanical contraption to "type" the orders into a NASDAQ terminal as fast as possible to stay legal.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
-
MachineGhost
- Executive Member
- Posts: 10054
- Joined: Sat Nov 12, 2011 9:31 am
Re: Dark Pools: High-Speed Traders, A.I. Bandits, and the Threat to the System
Another good followup on this subject looks to be The Signal and the Noise: Why So Many Predictions Fail - But Some Don’t by Nate Silver of FiveThirtyEight fame.
http://www.amazon.com/The-Signal-Noise- ... 59420411X/
http://www.amazon.com/The-Signal-Noise- ... 59420411X/
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!