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Bizarre Robot Traders

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posted on Aug, 4 2010 @ 04:29 PM
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Market Data Firm Spots the Tracks of Bizarre Robot Traders

But the algorithms we see at work here are different. They don't serve any function in the market. University of Pennsylvania finance professor, Michael Kearns, a specialist in algorithmic trading, called the patterns "curious," and noted that it wasn't immediately apparent what such order placement strategies might do.

Please visit the link provided for the complete story.

Source: www.theatlantic.com...

A bizarre pattern has been found by a trading firm in the markets, and seems to serve no purpose.

I am the only to think that High Frequency Trading is very damaging to our economies and effectively transform the markets into a giant poker table where only card counters make money?

What about a new law where a huge tax is imposed if you do not keep your stocks for at least a week?



posted on Aug, 4 2010 @ 05:35 PM
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What about abolishing stock markets altogether.

They are one of the biggest factors in allowing economies to be very unstable in this day and age.

Do a search for "South Sea Bubble" to see what i'm talking about.

Stock Market trading is another form of gambling. The only winners in gambling is the "bookie" (brokers). Few people really win on the stock market, unless you're lucky. Otherwise, it's all a lot of crap, and should be scrapped.



posted on Aug, 4 2010 @ 06:48 PM
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Interesting. It seems to be testing for something doesn't it?

Its kind of funny when even stock market veterans and experts can't even understand how the stock market really works.

[edit on 4-8-2010 by Zaxxon]



posted on Aug, 4 2010 @ 07:01 PM
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reply to post by Zaxxon
 


It's not the stock market PER SE that does this. The most credible theory I have seen so far is one operator is adding noise to the transactions to gain an advantage over other operators, as he can filter his own noise out, thus gaining the millisecond advantage.

It only show how any system CAN and WILL be exploited by people without moral values. Let it be the Soviet system or our stock market.



posted on Aug, 4 2010 @ 07:04 PM
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reply to post by Zaxxon
 


It reminded me of a documentary I recently watched : "The Alchemists of Wall Street".

Enjoy the movie!



posted on Aug, 4 2010 @ 08:02 PM
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reply to post by gagol
 

I'll have to check it out.

I'm just not well versed enough in the stock markets to make any kind of guess here.




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