High Frequency Could CRASH the Stock Market Right Now! Here’s Why

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Sources:
The Next Generation of Hedge Fund Stars: Data-Crunching Computers
Traders at BlackRock, the money management giant, then use the data to help choose whether to buy or sell the stocks of Chinese developers. “The machine is able to deal with some of the very complex decisions,” said Jeff Shen, co-chief investment officer at Scientific Active Equity, BlackRock’s quantitative trading, or quant, arm in San Francisco.

The future star of the hedge fund industry is not the next William A. Ackman, Carl C. Icahn or George Soros. Rather, it is a computer like the one at Scientific Active Equity, which sifts through data like satellite images from China every day.

And other than the occasional blowup, as when Long-Term Capital Management went bust in spectacular fashion in 1998 after its models failed to factor in the possibility of a Russian government debt default, the world of quantitative trading has remained out of the limelight.

Now, as the financial world faces dismal returns and investor criticism over high fees, hedge fund managers are turning to computers to make decisions that used to be left to humans about which stocks to buy and sell, for example.
http://www.nytimes.com/2016/11/15/business/dealbook/the-next-generation-of-hedge-fund-stars-data-crunching-computers.html

Comments

hag12100 says:

Every market now is operated by computers, therefore, a computer can crash the market.

See Canon says:

I understand that anything was traded in derivatives which in essence is betting ( gambling ) on whether ( pun used here ) it happened or not. But a quant cannot figure in ( include/exclude ) what the human fear can do. Economies are based on these decisions, good or bad and are controlled by governments and when governments control the economy government controls the people. Sad but Ronald Reagan said it many years ago as a warning to the little guy. Hello Venezuela!

Nicholas Battista says:

When you can geoengineer the planet, you can do well with weather futures….

Doubil Troubil says:

prozac prozac prozac ……fear fear fear

leftslayer says:

Even vegas would tell these banksters, that they're gambling like drunken sailors. ..weather derivatives, nuff said. …thanks David

Devils Advocate says:

Why am I still subscribed to this tripe. When is the economy NOT on the verge of collapse.

Michael-Paul Marasse says:

David, incalculable variables… that's the phrase… that's where math falls short.

mellender0 says:

all of these trades and not one penny in taxes I bet

Mikhail says:

you talk about algorithms making money like it was easy
ive been creating algorithms for ages now
its not that easy to make money LOL

if you have proof and source where i can find those "profitable money making algorithms"
pls i would gladly take ur video seriously

Muleskinner says:

Time to end the use of money.
Start with Steady State Economics end with Zeitgeist Movement or Venus Project.

Jaykrishnan Nair says:

Actually gold was suppose to be rallying with Trumps victory. But could you explain why price fall Thanks

Jaykrishnan Nair says:

In India, it is to attack the counterfeit currency and black money. A real change is happening there.

Luoi Today says:

the Wall street criminals will crash the markets Feb 24/17

Jeff Teasley says:

Boom, doom and gloom….. Everyday there's a "crash" coming

Searcher says:

one of the better videos you have done. Very informative and well explained.

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