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[Commentaries] Commentaries » Blog Archive » Wall Street meets The Matrix | Blogs |: The algorithms were build to detect patterns and act upon them, and there is more HFT the patterns are more and more determined by other HFT algorithms.

[Untitled] Worthwhile Readings to Start the Weekend: Nice catch from Matt on this article re: patterns in algorithmic trading. Great site; check out his informative trading videos;. * Thanks also to a sharp reader who found this long, but insightful post on what makes for trading success. ...

[OnStrategies Perspectives] When Real-Time Isn't Fast Enough: Notes from TUCON 2008 ...: It’s for a special use case: high-end financial services houses (maybe later telcos) who are so neck deep in algorithmic trading that they need to process such huge throughputs with practically no latency. They are packaging Rendezvous (the message bus on which the company was founded) in a box, with the idea being to provide supercharged throughput to financial service clients who are demanding it.

[T2W Day Trading & Forex Forums] HFT High Frequency Trading Programs: We've been keeping an eye on the high-frequency trading story since Matthew Goldstein of Reuters broke the story of a computer programmer at Goldman Sachs stealing a chunk of its automated-trading software code. High frequency trading systems are proprietary computer programs whose automated algorithmic software initiates trades with the goal of collecting rebates from the exchanges and/or detecting institutional order flow, and then execute buy/sell orders ahead of .

[I, Cringely] I, Cringely » Blog Archive » Is Technology Evil? - Cringely on ...: This is fine if we look at it as a process of evolution.  Maybe what we are going through lately is natural selection that will over time improve our culture and society.  But that’s not the way it is being pursued by Goldman and others: they aren’t envisioning some future after they’ve killed their host, nor do their techniques allow the host to recover before being bitten again.  I’ve talked with these guys and they are clueless about the implications of their work. The deepest they’ll go is to allow that China will likely be the next economic superpower so they’ll just move their operations to Beijing or Shanghai.

[Crooked Timber] Bookblogging: The rise of the efficient markets hypothesis ...: The most common view was one that seemed to preserve the efficient markets hypothesis while justifying the huge returns reaped by financial market professionals. This is the idea that the market is just close enough to perfect efficiency that the returns available from exploiting any inefficiency are equal to the cost of the skill and effort that goes into discovering it.

[Trading Systems News» Algorithmic Trading] The King of the Quants | Trading Systems News: In Axcom’s early days, professionals were skeptical about the kind of systematic trading Ax was doing. Still, he was brilliant and a natural at understanding probability, having shared the American Mathematical Society’s Frank Nelson Cole Prize in Number Theory in 1967.

[The Opinionator] Weekend Opinionator: Is Wall Street Picking Our Pockets? - The ...: Interestingly, those that are successful may be trading new patterns that have emerged since the onslaught of the high-frequency computers. My hunch is that these new patterns would involve a keen reading of order flow, catching the shift in the bidding/offering and the location (bid/offer) of transactions in real time.

[The Great Debate] The Great Debate » Debate Archive » How to fix the SEC | The Great ...: But this does a disservice to the investing public, especially since SEC investigations can often take years to complete. Just imagine how many investors might have been protected, if Stanford Financial had been forced to put a red flag on its website, noting the SEC was investigating its certificates of deposit business since 2005.

[The Event Processing Blog] Event Processing blog: CEP: What about the action?: With an imperative EPL, not only can you perform the front-end event pattern detection, but you can also create arbitrarily complex actions that run in real-time. A CEP platform must strive to not only make the event detection performant, reliable, and easy from a development point of view, but also provide facilities to build the corresponding real-time actions (which could be arbitrarily complex).

[The Rates Blog] Opinion - Blogging On Interest Rates, Economics & Business in New ...: The monetary model that the vast majority of university faculty teaches, rests upon what is essentially a fairy tale representation of monetary creation, which wasn’t even true in the 17th Century and certainly not today. The myth of savings being a prerequisite for capital investment has only been reinforced by the fundamentally misconceived monetarist and Austrian models of the monetary system and were debunked as early as the 1880s by the American sociologist and economist Thornstein Veblen and later by none other than the august Joseph Schumpeter (one of the few neoclassical economists I respect) in his “Theory of Economic Development”.

[Matt Cutts: Gadgets, Google, and SEO] Quick comment on nofollow: I listed my site in Wiki because it is on a highly relevant page and the editors have not deleted it (like they did to several others who were in fact spammers). Wiki is self policing so yeah, I wouldn’t worry about that as much, but I think Matt might have been focusing on how spam can turn a good site into a bad neighborhood…

[Shtetl-Optimized] Shtetl-Optimized » Blog Archive » Ask me (almost) anything: Except that not only do you have to worry about resources, you also have to worry about the fact that a bounded region has only a finite information capacity (proportional to its surface area, according to the holographic principle). And therefore, to solve an NP-complete problem using self-replicating computers you’d presumably need an exponential volume of space, which in turn implies exponential time because of the finiteness of the speed of light.

[Entitled to an Opinion] Who are the experts on experts? « Entitled to an Opinion: Here we get to what I think is either motivation capture by other things that seek algorithmic persistence with us as their replenishable, individually disposable medium (christianity, the racial pageant, the collectivist/individualist pageant, etc.) by primate aesthetics (simplified as gold and cutthroatedness, from the pirate vote puzzle, rather than personal survival), and even rational, zero sum status games to maximize individual survival odds at the expense of the survival odds of others, such as myself.

[The John Lothian Newsletter Blog] January 2007 Archives :: January 23, 2007: New hedge fund customers are also adding to the demands on Euronext's platform. The stock exchange said new trading techniques, such as algorithmic trading, were pushing up the number of trades that the equities platform has to handle.

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