shouldnt we traders be worried about algorithmic trading taking over?

[jammy1337]

won't this change the markets and their patterns that we have used consistently , wont this make it bad to be a day trader?

 

[Technically Fundamental]

I thought they were the reasons for them

 

[jammy1337]

you say the algo form these patterns? i mea , say for example pivot points, head and shoulders, breakouts. it is estimated b 2015 that 90% of trading wil be by a computer, i suppose though that that will make it more predictable. On the other hand it may get so predictable that other algos are made to outsmart the original ones, and it becomes a great big mess

 

[GammaJammer]

One day, years from now, the proprietary trading desk at a large bank will typically consist simply of three things.....

A man, a dog and a computer. The computer's job will be to trade. The man's job will be to feed the dog. The dog's job will be to bite the man if he goes anywhere near the computer.

Don't worry. We aren't quite there yet. The technology still has some way to go. Specifically they're working on getting security passcards that the dogs can operate easily enough. Everything else is in place.

 

[jammy1337]

how many years do you think it will be when the days of the day trader are dead

 

[Technically Fundamental]

Computers just to maximise benefit for cash flow or adaptive AI that just makes a killing wherever it can?

Edit: Was asking Gammajammer what he thinks will most likely be the function of these new computers.

 

[jammy1337]

what are you saying?

 

[GammaJammer]

Computers just to maximise benefit for cash flow or adaptive AI that just makes a killing wherever it can?

Edit: Was asking Gammajammer what he thinks will most likely be the function of these new computers.

The computers will have a large clock ticking down. When it gets to zero an alarm will go off telling the man to feed the dog.

 

[jammy1337]

ok enough of this metaphorical stuff ! in your honest opinion, do you think these algos will kill the day trader?

 

[Technically Fundamental]

You sure you'll be qualified enough to survive the mass layoffs GJ? This dog feeding positions sounds as though your bosses nephews might just be that bit more qualified for that high paying position.

 

[Technically Fundamental]

In a word... No.

 

[jammy1337]

thanks for the reassurance , lol i break into a cold sweat every time i hear about some master algo code that will change the market and make it impossible to trade

 

[Technically Fundamental]

thanks for the reassurance , lol i break into a cold sweat every time i hear about some master algo code that will change the market and make it impossible to trade

I'm an accountant.

 

[gooseman]

someone still has to have the knowledge to run the models/programmes etc. safe. for now.

 

[jammy1337]

oh, well does anyone else have an answer to my question?

 

[jammy1337]

and what will the markets be like when it isn't 'safe'

 

[Technically Fundamental]

The same. Probably more "crashes".

 

[jammy1337]

oh, that ain't good for day traders

 

[Technically Fundamental]

I thought it would be excellent

 

[Skill Leverage]

People have been saying that speculators/traders are living on borrowed time, for one reason or another, since the late 1800s. There are too many intangibles involved in trading (in a discretionary manner at least) for a computer to understand and act on, at least any CPU I've seen in action. There are some interesting developments in AI coming to fruition over the next decade or so, but don't forget that a market wouldn't function without people making mistakes... that probably doesn't make sense to most of you. Indeed it might be madness.