Goldmans top-secret quant algorithm code stolen

[Directional]

amazing stuff!

Zero Hedge: Is A Case Of Quant Trading Sabotage About To Destroy Goldman Sachs?

Commentaries Blog Archive A Goldman trading scandal? | Blogs |

 

[Block_king]

Very interesting. They have some very smart algos at GS.

 

[N Rothschild]

Very interesting. They have some very smart algos at GS.

no ****

 

[poborsky]

I thought theft of "intellectual property" was all part of daily routine down that way. Its the getting caught that looks dodgy.

 

[N Rothschild]

with nearly half the volume on NYSE being automated systems gotta wonder whats the point in discretionary trading if your just trading vs a machine.

 

[Aspire]

with nearly half the volume on NYSE being automated systems gotta wonder whats the point in discretionary trading if your just trading vs a machine.

The point is to make money.....

There's no one perfect machine taking all of everyones money off them. machines are just other market participants.

 

[N Rothschild]

yes but machines dont trade like humans do they..

 

[squall321]

the bank has raised the possibility that somebody who knew how to use the program could us it to manipulate markets in unfair ways.

 

[pedro01]

Looks like a marketing ploy to me.

 

[poborsky]

Maybe Ben Bernanke told them to get rid of it. After all, the last time they were let loose with one of these things he had to print 13 trillion dollars to pull them out of the crap! - allegedly.

 

[poborsky]

Interesting views on the markets:

YouTube - Trader on Bloomberg says markets are manipulated and volumes 'ficticious'.

 

[Hoggums]

As programmer in banks working on some of their so-called intelligent trading software I can verify the above approach. There's nothing clever going on at all, these programs are essentially pretty dumb and react and chase the market - not predict it.

Any discretionary trader with a view of the bigger picture can take advantage of this and enjoy larger profits as a result.

I predict that this sort of trading will eventually bubble and blow itself up just like every other system out there.

 

[melanie911]

this is the stolen Alg:

function too-big-to-fail(){
ask-government-money();}

//##########CODE BEGIN

enter random;

if profit>0 then bonus-to-manager()
else too-big-to-fail();

 

[GammaJammer]

As programmer in banks working on some of their so-called intelligent trading software I can verify the above approach. There's nothing clever going on at all, these programs are essentially pretty dumb and react and chase the market - not predict it.

Any discretionary trader with a view of the bigger picture can take advantage of this and enjoy larger profits as a result.

I predict that this sort of trading will eventually bubble and blow itself up just like every other system out there.

Basically pattern recognition on a grand scale combined with expectation monitoring / risk methodology and a few rules to govern what happens when you get legged out right?

 

[GammaJammer]

Incidentally that doesn't mean it can't as a whole end up being...

i) Complex
ii) Expensive to build / maintain
iii) Profitable

It's just that as Hoggums has rightly pointed out, the underlying principles are not rocket science.

 

[N Rothschild]

i love how the us attorney claims this code can be used to manipulate markets in the wrong hands...so its ok for goldman to have it because they would never do such a thing? morons...

 

[Technically Fundamental]

Anyone have any idea if these algo's use trade multiple markets or use intermarket analysis?
I've always though of top algos bordering on AI. Maybe I've been overestimating all this time.

 

[gooseman]

no-they can only process one market at a time

 

[Technically Fundamental]

I imagined highly sophisticated computers somewhere that pick trades based on hyperspeed intermarket analysis and evaluation of most probable outcome.

Now I'm being told its patterns, R:R and a huge purse. i feel like I've been told there is no Father Christmas.

 

[gooseman]

i'd get used to it. pretty much every screen market has this form of "trader" in it somewhere. next time you get a fill think about why you're two ticks offside instantly ;-)