Algorithmic trading....

Well yes of course they have already arrived. Accoding to one study almost 20% of the NASDAQ volumes everyday are generated by automated trading sytems with ZERO human intervention or knowledge. Infact I know of a big hedge fund that has a network of 1600 computers working together worldwide as a giant super computer and all trades are taken automatically as per preprogrammed logic.

That hedge fund has a team of about 1000 software professionals to implement the whole system and sometimes arbitrage trades across global markets are done within a time span of 1 second Daily around 1500 arbitrage trades are taken in by this system all automatically.. Such is the computing power of their networked computers that they are not diversifying into the highest compute intensive reasearch in microbiology and microchemistry.

I wonder for how long will my desktop with my pair of eyes will be able to fight against the compute power of the bots ))

(Source: Yahoo Group)

subratabera,
Arbitragers are a part & parcel of the Mkt since long.Infact they are very much an essential part in capital mkt as some bacterias ( like those present in
the human system to produce,lacto bacillus,vitamin K etc,that is the prime reason Docs always prescribe B-complex with anti bacterial drugs,so as not to kill this friendly bacterias ) to human body.Dont worry about them ,rather without them the Spread will be effected.As day traders are essential to give liquidity & depth.

Asish

Hi,

Asish, excellent said!!!!!

Nice reply Asish. Ya, agree with you. As I mentioned in the above post, I was just pasted this from a Yahoo Group because I thought this will be an interesting read...

Interesting but behind every computer there is a supercomp called homo erectus...

ss

You are right...