3 ms·
Are these so called high frequency trading algorithms being fed Twitter/Soc Med information? Not sure if pure human intervention could cause such a large drop
by RaSoJo 14y ago
Are these so called high frequency trading algorithms being fed Twitter/Soc Med information?
Not sure if pure human intervention could cause such a large drop in so short a time period.
In which case, hacking multiple relatively smaller information sources, rather than larger govt. or banking sites could provide very high upsides with much lower risks.
- john_b 14y agoThat is my hunch as well. HFT algorithms do exist which trade primarily on news feeds, and given the relative ease of harvesting Twitter data, there has to be more than just a few HFT bots that reacted to this.
- uptown 14y ago"Are these so called high frequency trading algorithms being fed Twitter/Soc Med information?" Yes - Some are. Absolutely.
- micheleg 14y agoYep, that becomes the huge problem with automatic trading programs. Our financial system is becoming a joke that can easily be gamed. This type of thing will continue to happen!
- kasey_junk 14y agoThere are automatic trading strategies that trade based on news events. Opinions on them are pretty mixed as none of the published ones show consistent returns above luck levels. What is more likely is that human traders reacted to the tweet and caused microstructure changes that were amplified by algorithmic trading activity causing the rapid sell off. But then on the flip side those same algorithmic trades brought the price back to it's correct level just as quickly. This is essentially a no harm/no foul event where the only people impacted are the game players.