what the...DOW down almost 1000, recovers most of it. Human error :)

[Nemesis 1]

I love I give you a good laugh , Its actually a good thing . But for every good there is a bad, The last laugh is not such a good thing.

 

[totalnoob]

nemesis, you've got 2 years until the planet explodes buddy..Why are you bothering with investments? Cash everything out and tour the world..You need to blow every penny, splurge on the best food, entertainment, massages, etc. Enjoy life and die broke when doomsday arrives.

 

[DAGTA]

it's not a human error.

Yen pre-empted S&P500/Dow/"The Market" by 20 minutes, bottoms at exactly the same time.

"we don't like what happened yesterday, so we are going to press a reset button"

Must be nice to manipulate the money supply at will

 

[Nemesis 1]

Your a dreamer, 2 years world still here. You don't have 2 years. I have more than I ever wanted as it is. Its not about money its about beating the bad guys and making their master step out . Me and him have business to take care of.

 

[Hacp]

This was not an error in the system. This was a human error that caused algorithms to go wild. Big investment banks that choose to use algorithms to trade need to feel the downsides of doing so. Making arbitrary rules that prevent the downsides just reeks of favoritism.

 

[soccerballtux]

This was not an error in the system. This was a human error that caused algorithms to go wild. Big investment banks that choose to use algorithms to trade need to feel the downsides of doing so. Making arbitrary rules that prevent the downsides just reeks of favoritism.

lol

 

[Patranus]

Looks like the selloff started in Chicago before this "human error"

 

[jman19]

This was not an error in the system. This was a "human error" that caused algorithms to go wild by design. Big investment banks that choose to use algorithms to trade need to feel the downsides of doing so. Making arbitrary rules that prevent the downsides just reeks of favoritism.

Fixed.

 

[StageLeft]

http://wallstreet.blogs.fortune.cnn.com/2010/05/07/the-nyse-and-high-frequency-trading/

This guy says the whole robotic trading model needs to be dropped.

 

[CPA]

No human error according to Obama's boys.

 

[spidey07]

No human error according to Obama's boys.

/jedi hand

"Nothing happened. There is nothing to see here. Focus attention somewhere else, you will"

 

[jman19]

/jedi hand

"Nothing happened. There is nothing to see here. Focus attention somewhere else, you will"

Dumb.

 

[halik]

http://wallstreet.blogs.fortune.cnn.com/2010/05/07/the-nyse-and-high-frequency-trading/

This guy says the whole robotic trading model needs to be dropped.

Ha yeah, anyone on the market making side will make up bullshit to get bid-ask spreads widening. That's how they make money.

They're the same people that opposed going from fractions to decimals, for the very same reason.

High frequency stat arb models don't roll on momentum, they bid up and down to keep stuff in line with the fundamental modeled value. All these people jumping on the HF bandwagon have huge economic incentives to spin the story.

 

[spidey07]

So they're speculating automated activity/sells cause this? Now somebody correct me if I'm wrong but wasn't that what caused to big crash in 86 or the other recent one and there were all kinds of rules put in place to prevent such a thing?

 

[halik]

So they're speculating automated activity/sells cause this? Now somebody correct me if I'm wrong but wasn't that what caused to big crash in 86 or the other recent one and there were all kinds of rules put in place to prevent such a thing?

It was a structural fuck up from what I understand. The people on NYSE stopped printing tickets, so the entire order flow went to much smaller supply of market makers and price discovery got F'd.

It's got very little to do with people on the floor vs algo order routing, it's just if you take away large portion of the market makers during a sell wave, prices will get way outta whack.

HF trading generally takes small positions and makes small returns that compound over time. For example EMC owns part of VMWARE, so their stock prices are mathematically linked. If i have the best, fastest algo that's colocated closes to the exchange, I will hit bids and lift offers as long as the prices are out of my modeled equilibrium.

 

[Nemesis 1]

/jedi hand

"Nothing happened. There is nothing to see here. Focus attention somewhere else, you will"

Not bad, you comprehend well