Comments on: The race for the fastest automated trading http://futurebanking.bankofamerica.com/race-fastest-automated-trading-2_871 Future Banking Blog Sat, 07 Nov 2009 14:00:03 +0000 http://wordpress.org/?v=2.6.3 By: boa_user http://futurebanking.bankofamerica.com/race-fastest-automated-trading-2_871#comment-3324 boa_user Tue, 13 Oct 2009 13:46:31 +0000 http://futurebanking.bankofamerica.com/?p=871#comment-3324 interesting interesting

]]> By: Rhea http://futurebanking.bankofamerica.com/race-fastest-automated-trading-2_871#comment-3312 Rhea Tue, 29 Sep 2009 01:34:07 +0000 http://futurebanking.bankofamerica.com/?p=871#comment-3312 I am Rhea S. I have visited your website and I would like to congratulate you on building such a valuable online resource. I am sure your visitors find your site as useful as I did. Have a great day. Thanks and regards, Rhea S.  I am Rhea S. I have visited your website and I would like to congratulate you on building such a valuable online resource. I am sure your visitors find your site as useful as I did.
Have a great day.
Thanks and regards,
Rhea S. 

]]> By: computerkabel http://futurebanking.bankofamerica.com/race-fastest-automated-trading-2_871#comment-3279 computerkabel Sat, 19 Sep 2009 10:45:59 +0000 http://futurebanking.bankofamerica.com/?p=871#comment-3279 Great Article but Can you also explain us also where we could find more information about perceptrons and how to program them? what about a neural network with more layers, will it be more accurate? Is there any books on the subject (in english) you can recommend? Thanks again for your help. Great Article but Can you also explain us also where we could find more information about perceptrons and how to program them? what about a neural network with more layers, will it be more accurate? Is there any books on the subject (in english) you can recommend?
Thanks again for your help.

]]> By: JDS http://futurebanking.bankofamerica.com/race-fastest-automated-trading-2_871#comment-3259 JDS Mon, 17 Aug 2009 17:30:55 +0000 http://futurebanking.bankofamerica.com/?p=871#comment-3259 Trading is a zero-sum game.  As I understand it, algorithmic trading systems have two purposes. They seek to harvest pricing anomalies, and they try to send false pricing signals to induce favorable market movements. But both of these are self-limiting. Obviously, taking bid/ask quotes that are out of line clears them. The second effect is self-limiting, too.  As algorithmic trading grows more pervasive false signals will fail - they'll fail to affect market conditions, and they're sure to lose money for the trader. Mistakes and counterparty failures remain problems, but algorithmic trading offers the promise of uncovering them faster -- or even keeping them out of the market. Trading is a zero-sum game.  As I understand it, algorithmic trading systems have two purposes. They seek to harvest pricing anomalies, and they try to send false pricing signals to induce favorable market movements.

But both of these are self-limiting. Obviously, taking bid/ask quotes that are out of line clears them.

The second effect is self-limiting, too.  As algorithmic trading grows more pervasive false signals will fail - they’ll fail to affect market conditions, and they’re sure to lose money for the trader.

Mistakes and counterparty failures remain problems, but algorithmic trading offers the promise of uncovering them faster — or even keeping them out of the market.

]]> By: cm_icc http://futurebanking.bankofamerica.com/race-fastest-automated-trading-2_871#comment-164 cm_icc Sat, 07 Mar 2009 09:51:56 +0000 http://futurebanking.bankofamerica.com/?p=871#comment-164 after working out a couple of policies, couldn't an interconnected global network of trading systems run on a delay (ala radio and tv brodcasting) to anticipate the destabilizing effect of a trade and deny its execution? [it would have to operate in realtime rather than simulation b/c non-programmed trades would still occur randomly] what would be the policy definition of a destabilizing trade? what would be the policy for compensating the parties denied their trade? if trading were totally programmed, would it be a 'free' market anymore? after working out a couple of policies, couldn’t an interconnected global network of trading systems run on a delay (ala radio and tv brodcasting) to anticipate the destabilizing effect of a trade and deny its execution? [it would have to operate in realtime rather than simulation b/c non-programmed trades would still occur randomly]

what would be the policy definition of a destabilizing trade?
what would be the policy for compensating the parties denied their trade?
if trading were totally programmed, would it be a ‘free’ market anymore?

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