Poor August for Quant's at Morgan Stanley!!

[TheMoneyMachine]

This article provides a nice example of the pitfalls associated in automation and in my personal opinion why their will always be a need for human interaction to some extent when trading markets,

http://www.traderdaily.co.uk/news/item/11317.html

Regards

TMM

 

[TheBramble]

"...the problem was that there was widespread selling, and the computer models didn't properly take into account just how important that was..."

...

I was expecting something a little deeper, but perhaps this nicely demonstrates the real weakest link in automated trading.

 

[TheMoneyMachine]

"...the problem was that there was widespread selling, and the computer models didn't properly take into account just how important that was..."...

I was expecting something a little deeper, but perhaps this nicely demonstrates the real weakest link in automated trading.

I will rephrase - This article demonstrates that regardless of how much technology, resource & intelligence is available automation will always require human interaction of some extent!

Regards

TMM

 

[TheBramble]

What automation needs it TOTAL automation, and the absolute lack of any human involvement or intervention whatsoever. Either in the execution of trades or indeed, in the programming itself. Just build a learning machine.

Actually, we do that all the time - babies. The Ultimate Learning machines.

Put a kid in front of a proper screen - a trading screen, not a TV, and check the responses. No preconceptions, no emotions, no external or internal models to base anything upon, no worn ruts of conditioned thinking, no assumptions or constraints or restrictions on what is, and is not possible or probable. That’s people before they become ‘humans’. Mind blowing....

Of course, you could always try getting into that state ( actually typed ‘theta state’ while thinking ‘that state’ LOL) yourself.

Must stop smokin’ this stuff…

 

[Trader333]

If everything becomes automated then it is just a case of computers playing against themselves and, in theory, any consistent edge will be lost in my view.



Paul

 

[TheBramble]

Paul, there would still potentially be a market in spoofing the other guys trading machines to get them to do something you can profit from. Flipping comes to mind. And that’s just a first order spoof…

 

[jacinto]

Put a kid in front of a proper screen - a trading screen, not a TV, and check the responses. No preconceptions, no emotions, no external or internal models to base anything upon, no worn ruts of conditioned thinking, no assumptions or constraints or restrictions on what is, and is not possible or probable. That’s people before they become ‘humans’. Mind blowing....

the other day, my kid saw my chart, and said....."thats a nice cake papa"

i asked her why and she replied.........."look at all your candles"

 

[rols]

What automation needs it TOTAL automation, and the absolute lack of any human involvement or intervention whatsoever. Either in the execution of trades or indeed, in the programming itself. Just build a learning machine.

Actually, we do that all the time - babies. The Ultimate Learning machines.

Put a kid in front of a proper screen - a trading screen, not a TV, and check the responses. No preconceptions, no emotions, no external or internal models to base anything upon, no worn ruts of conditioned thinking, no assumptions or constraints or restrictions on what is, and is not possible or probable. That’s people before they become ‘humans’. Mind blowing....

Of course, you could always try getting into that state ( actually typed ‘theta state’ while thinking ‘that state’ LOL) yourself.

Must stop smokin’ this stuff…

I have made a tape for dropping into Theta and it is so good that I find myself just staring into the monitor and enjoying the movement and colours and forget about trading. Alpha state is better IMO. It doesn't really matter what state you're in because if you don't know how to do it then you don't know how to do it and there is no magic bullet. You could show a baby buddist monk a trading screen, but could he trade oil futures on a Wednesday afternoon?

We need to be tapped in emotionally to be able to harvest the markets. It's a question of knowing and taming the cerebellum. We do that through knowledge, discipline, technique and control and not trading when the candles are yellow.