Wednesday, August 10, 2011

Supercomputers: The New Face of Wall Street (For Better or Worse)

Wow, this is amazing.  Anyone who's studied control theory would recognize oscillations from having the gain too high.

if you think about it, if could could deliberately cause oscillations you could make a fortune by triggering high frequency oscillations on the other control system. Stealing money from them over and over with each swing. If you could find the resonance for any given trading system you could problem it's behavior and attack any specific trading system.

If they are low frequency trades again tossing people (Human) from up and down in panic and euphoria would allow them the keep winning over and over.

I remember Jimmy the Greek once said it was about taking advantage of emotional betters. Finding people who would be odds worse then the generally accepted standard. He could then hedge and would win which ever team won.

Imagine the a Big Rich corporate media exec wanting to manipulate the market. Just how many ways would they be able to find away to get away with it. Imagine them with a teams hacking voice mail systems for example.



Did Mark Cuban Predict The Market Crash?

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