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Author: karensie Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 214225  
Subject: OT-High Frequency Trading Date: 4/22/2013 7:08 PM
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"Supercomputers could generate warnings for stock crashes"

"Tracking every trade, in real time, on every U.S. stock exchange? No big deal."

http://www.denverpost.com/business/ci_23066181/supercomputer...

Tim
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Author: mungofitch Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 201129 of 214225
Subject: Re: OT-High Frequency Trading Date: 4/23/2013 7:40 AM
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I'm always amazed at the amount of press that HFT gets.
It's really not a very big business, for all its frenetic activity.
Current latest central estimate is that all the HFT players combined had aggregate
profits of about $1 billion last year, down more than 75% from 2008's total.
(figures from the Economist)

As for flash crashes, don't worry, be happy. Prices can do anything in the short term.
That was always true, and presumably always will be.
I find one quote in that article telling:
"Most agree that computer trading is good for the average investor
because it's inexpensive. But it also triggers unpredictably large price swings —
causing widespread Maalox moments. It's breeding distrust in the market."


That last bit hits the nail on the head: nobody with the intelligence god granted
a pound cake can lose money to these guys because we always use limit orders.
Nothing is broken because prices never were fair.
The issue is one of making the rubes feel comfortable with investing in stocks.
Perhaps a little more distrust would be a good idea. Bring on the volatility.

Jim

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Author: karensie Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 201134 of 214225
Subject: Re: OT-High Frequency Trading Date: 4/23/2013 2:41 PM
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A single tweet can do this? Imagine what a "cyber attack" could do.

"A news agency tweet, that turned out to be fake about explosions at the White House injuring President Obama, sent markets on a round trip roller coaster road."

http://www.cnbc.com/id/100646197

Tim

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Author: karensie Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 201139 of 214225
Subject: Re: OT-High Frequency Trading Date: 4/24/2013 6:36 AM
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I understand that there is nothing to worry about but...

"The Trading Robots Really Are Reading Twitter"

"It's not so much that the computers initiated trades. What happened is that they canceled the orders, so the bids come out of the market. That causes a crash," a person at an algorithmic trading firm explained.

http://www.cnbc.com/id/100666302

Tim

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Author: JeanDavid Big funky green star, 20000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 201140 of 214225
Subject: Re: OT-High Frequency Trading Date: 4/24/2013 6:55 AM
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I have a "great" idea, then. We will set up a company that from time-to-time will inject a lot of "sentiment" into Twitter. It will not reflect genuine sentiment, but will appear so. This sentiment will flood Twitter enough to fool these guys into thinking the Tweeters are coming up with this collective "opinion." But in fact, no people have this opinion (or very few, anyway), and mislead this algo-bots into doing something more foolish than usual.

While I am not serious about doing this (no resources, for one thing), it strikes me that someone with nothing better to do will try this sooner or later.

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Author: karensie Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 201141 of 214225
Subject: Re: OT-High Frequency Trading Date: 4/24/2013 6:55 AM
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Anyone get BRKB for 105.30 yesterday?

http://finance.yahoo.com/echarts?s=BRK-B+Interactive#symbol=...

Tim

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Author: wittgenstein Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 201142 of 214225
Subject: Re: OT-High Frequency Trading Date: 4/24/2013 8:06 AM
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Perhaps a little more distrust would be a good idea. Bring on the volatility.

For sure. Sad to say some of my very best purchases were at accidentally reached prices, and my best laid plans generally took longer than expected to work.

jz

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