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        Arimaa >> Off Topic Discussion >> Outsmarting algorithm in stock market
        
(Message started by: clojure on Oct 4^th, 2010, 9:37am)

Title: Outsmarting algorithm in stock market
Post by clojure on Oct 4^th, 2010, 9:37am

Very interesting case where norwegian guys managed to outplay a trade bot and are now facing the consequences in a trial. They are accused of trade manipulation. Common sense tells me this is a case where business outweighs rationalism.

http://econotwist.wordpress.com/2010/08/17/norwegian-day-traders-crack-the-timber-hill-trading-system/

Title: Re: Outsmarting algorithm in stock market
Post by rbarreira on Oct 4^th, 2010, 10:12am

Interesting, because as far as I've heard those HFT computers have access to information that those human traders don't, and that is supposed to be private (for example they can make an order and cancel it very quickly to probe what other orders exist).

That is outrageous in itself, but it's even worse when the ones getting prosecuted in a case like this are the ones who don't have access to supposedly protected information.