tag:blogger.com,1999:blog-1593646321321250335.post2125332490370260806..comments2023-05-15T01:48:18.604-07:00Comments on Complacent Panda: Velocity, AccelerationComplacent Pandahttp://www.blogger.com/profile/17566522990764421703noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-1593646321321250335.post-34921489876807051352009-03-14T11:51:00.000-07:002009-03-14T11:51:00.000-07:00I herd about hedge funds that use systems that act...I herd about hedge funds that use systems that actually read the news. A computer reads the news from Bloomberg or Reuters right after they were posted and would rate that "piece of information" through key words. Then the computer would buy/sell (or do nothing) the stock according to the its rating.The idea here was that the computer would be able to read the article/news/event much faster than a person, and thus enter his (it's =P) order much faster. One of the things they discovered or were amazed was that the response speed to those news was much slower than they would have thought.<BR/><BR/>I guess it is just a matter of time before some other hedge funds adopt similar strategies ...<BR/><BR/>Some of the old shcool guys must be going: "Ahhh... the good old times when we would phone-in our orders and read the quotes in WSJ or FT"Filipehttps://www.blogger.com/profile/16825010799857419308noreply@blogger.comtag:blogger.com,1999:blog-1593646321321250335.post-44449496406123774012009-03-14T02:09:00.000-07:002009-03-14T02:09:00.000-07:00Mark, like you said the sentence still stands for ...Mark, like you said the sentence still stands for illiquid and gutter stocks traded by retail and semi-pro traders. As for the bluer chip stocks traded by machine, the sentence could be modified to say "...reacting psychologically, and how the algorithms of the computer-based trading robots may be responding to the stock's price movement."<BR/><BR/>CP - Nice post. How would you factor volatility into this equation?<BR/><BR/>Thanks for the offer for the coaching. Let's email by Twitter or via the link on my profile. <BR/><BR/>Maybe I could convince Mark to help out - if we add the ages of the two of you together you may be just a little older than me - you youngsters that know way more about trading than me!Charlie G.https://www.blogger.com/profile/06796029327655687309noreply@blogger.comtag:blogger.com,1999:blog-1593646321321250335.post-61092698375340956422009-03-13T20:07:00.000-07:002009-03-13T20:07:00.000-07:00well, I guess there is still a lot of psychology t...well, I guess there is still a lot of psychology though. I really have no idea the real amount of program trading going on. I read that a couple years ago it was like 30-40% on the Naz and NYSE I'm a cynic so take that to really mean 60%+ lol<BR/><BR/>haha T2 that's a good one. Remember though, Science fiction about always becomes fact. humans flying, moon trip, cloning etc.mphttps://www.blogger.com/profile/02803059053571729962noreply@blogger.comtag:blogger.com,1999:blog-1593646321321250335.post-28373127047891265392009-03-13T18:58:00.000-07:002009-03-13T18:58:00.000-07:00The world is being taken over by robots.I should'v...The world is being taken over by robots.<BR/><BR/>I should've paid more attention to Terminator 2.<BR/><BR/>- CP, being phased out.<BR/><BR/>=)Complacent Pandahttps://www.blogger.com/profile/17566522990764421703noreply@blogger.comtag:blogger.com,1999:blog-1593646321321250335.post-52787990817700307352009-03-13T17:33:00.000-07:002009-03-13T17:33:00.000-07:00"The speed at which a stock progresses also tells ..."The speed at which a stock progresses also tells you how the traders are reacting psychologically. Are they hurriedly picking up shares in fear of losing short profits? Perhaps, they are overreacting to good news, or bad. "<BR/><BR/>atleast half of all trades on the big exchanges are program trades nowadays though. Hedge funds with computers. I see what you mean though for penny's.Anonymousnoreply@blogger.com