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Sudden Demand for Logicians on Wall Street

Anonymous Coward writes | more than 4 years ago

1

An anonymous reader writes "In an unexpected development for the depressed market for mathematical logicians, Wall Street has begun quietly and aggressively recruiting proof theorists and recursion theorists for their expertise in applying ordinal notations and ordinal collapsing functions to high-frequency algorithmic trading. Ordinal notations, which specify sequences of ordinal numbers of ever increasing complexity, are being used by elite trading operations to parameterize families of trading strategies of breathtaking sophistication. Ordinal notation high-frequency trading algorithms pit their strategies against similar algorithmic opponents on electronic exchanges for a few fleeting seconds, during which thousands of trades are executed, including exploratory trades that test the strategies of opposing human and machine traders.

The monetary advantage of the current strategy is rapidly exhausted after a lifetime of approximately four seconds–an eternity for a machine, but barely enough time for a human to begin to comprehend what happened. The algorithm then switches to another trading strategy of higher ordinal rank, and uses this for a few seconds on one or more electronic exchanges, and so on, while opponent algorithms attempt the same maneuvers, risking billions of dollars in the process."

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Program trading should be banned (1)

blair1q (305137) | more than 4 years ago | (#32343556)

When you put this sort of reactive control equipment on system, and you don't bench-test the hell out of it to move its poles and zeroes around (or whatever analogue exists for your nonlinear control method), you are GUARANTEED to have unstable modes.

And this system still has the life-savings of millions of people in it.

And very few of them even know that some of the "people" trading on the system are actually computers.

And none of them, until now, because I'm the first one saying it, has had the first clue that such a combination of controllers is going to drive the market into a wall.

Besides which, the idea of free markets is that people decide what value is. Computers have zero comprehension of the concept of value, and the humans who rely on the markets to be fair, and allow the markets to be free because they're supposed to be fair, are being defrauded by the computers that are setting false values for corporate equity.

Ban computerized trading. Require a human being to make the decision on every order.

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