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> It might be an interesting failure scenario for algorithmic trading. It's not how auto trading works. Traded instrument ranges are preset before the algo is
by obiterdictum 13y ago
> It might be an interesting failure scenario for algorithmic trading.
It's not how auto trading works. Traded instrument ranges are preset before the algo is started. I've never heard of an algo that tries to pick stocks to trade dynamically based on a name, it would be astoundingly risky.
- phyalow 13y agoRIC codes are the industry standard security identifier. Name doesn't play apart, must be some truely idiotic manual investors.
- jared314 13y ago> It's not how auto trading works. That's OK. It doesn't have to exist for it to be interesting to me. Think of it more like an interesting extrapolation of a scifi story, if you want. HFT advantages become slim enough to warrant dynamic instrument selection based on twitter sentiment analysis. So, you get bad algorithms following imperfect people, who execute millions of trades to fast to watch. And, someone trying to take advantage of that would act like a domain squatter, taking stake in a penny stock, predicting the next misspelling and correction.
- dsl 13y agoWhat does the name have to do with anything? A few dozen people screw up and the bots see a stock go from worthless to hot in a short period of time and jump on board.