4 ms·
"Correct price" is not boolean. Speed and accuracy both have degrees and they trade off. High frequency traders use algorithms which are not as accurate as po
by Crito 12y ago
"Correct price" is not boolean. Speed and accuracy both have degrees and they trade off. High frequency traders use algorithms which are not as accurate as possible, but are fast. They knowingly use algorithms which have compromised accuracy for speed.
They therefore deserve zero sympathy when their algorithms fuck up. They knew what they were getting into, so they should accept the consequences with grace.
- icebraining 12y agoBut the context wasn't people saying we shouldn't have sympathy, but that they should be illegal.
- cmdrfred 12y agoMy two cents are that for something to be illegal there has to be a victim, and the victim can't be yourself. Whomever employed the persons responsible might have a legitimate claim to damages. But as they say in the kitchens I grew up working in, the traders eat their mistake.
- cbsmith 12y agoI didn't realize anyone was suggesting they should be illegal. I was suggesting that the structure of the marketplaces have resulted in a flawed set of incentives that threaten the health of the market. There is a need to change the rules to keep the market healthy.
- harryh 12y agoI certainly agree that when their algorithms fuck up they deserve no sympathy. They lost money, and that's that. But that shouldn't be a reason to consider making operating on those algorithms illegal.