How to address economic crisis using computers?

Discussion in 'Intelligence & Machines' started by Mind Over Matter, Dec 6, 2011.

Thread Status:
Not open for further replies.
  1. Mind Over Matter Registered Senior Member

    Messages:
    1,205
    How is it posible for machine (computers, robots etc) to replace people in stock market trading? I mean eliminate people from participation/picking stock to make or loose money.
     
    Last edited: Dec 6, 2011
  2. Google AdSense Guest Advertisement



    to hide all adverts.
  3. cosmictraveler Be kind to yourself always. Valued Senior Member

    Messages:
    33,264
    Just program them for certain parameters of high and low prices of all the stocks you want to invest in. That way if say one goes down to far your program will sell that stock off or visa versa. Large companies use programs to buy and sell automatically by the trends that the market develops during the day trading hours. As I said each program is made to follow the guidelines that you or anyone want to program into it.
     
  4. Google AdSense Guest Advertisement



    to hide all adverts.
  5. spidergoat Valued Senior Member

    Messages:
    51,923
    No, that's the whole problem in the first place, they use computers to make many, many trades very quickly, making a tiny amount of money each time. We need to put a small transaction tax on all trades in order to prevent this.
     
  6. Google AdSense Guest Advertisement



    to hide all adverts.
  7. wynn ˙ Valued Senior Member

    Messages:
    15,058
    Eliminate the stock market altogether. Because it is based on the idea of exploiting other people's ignorance, misery, hardship.
     
  8. kwhilborn Banned Banned

    Messages:
    2,088
    Computers cannot tell people what they want to invest in. Stock markets eliminate footwork, but any corporation can sell shares.

    I better question might be "what if companies were not allowed to go public?"
     
  9. AlexG Like nailing Jello to a tree Valued Senior Member

    Messages:
    4,304
    In the big trading houses, that's pretty much been done already. And it's a principle reason for the tremendous single day dives the market has taken.
     
  10. Mind Over Matter Registered Senior Member

    Messages:
    1,205
    But there is no set of equations that can accurately predict all factors
    in the stock market. With my limited knowledge about IT, I may not be able to explain things accurately. Those who have better understanding of IT and current financial crisis, please chime in.
     
  11. kwhilborn Banned Banned

    Messages:
    2,088
    People type what they want into their computers. Their broker hits the trading floor and enters your requests on your behalf. Like cosmic said, the requests are controlled by your own parameters.

    I do not not understand your initial statement. You want computers to decide investments? I don't think anybody wants to put their finances into a computer trading program, as they want to choose their own investments.

    Corporations with shareholders often trade publicly as a way to get outside investment into their company. This is just how it is done. The investors can walk to the company on foot and buy shares, or if the company is trading on the exchange they can simply get their brokers to pick it up for them as per their order on their home pc.

    The exchanges just save travel time for investors. If you want shares in microsoft you don't need to go to silicon valley.

    Stopping companies from selling shares would only hurt businesses.

    I am unsure what solution you are looking for?
     
  12. Stryder Keeper of "good" ideas. Valued Senior Member

    Messages:
    13,101
    The algorithm you'd attempt to depict is Arbitrage

    The problem is that any code written to buy low and sell high with increasing or decreasing volume depending on how close it is to the median buy-in, can actually be manipulated to panic if the algorithm is understood.

    That means while Arbitrage is usually referred to as "risk-free", exploitation of it's algorithms actually generates an overall financial security risk. Since if such a system is used it's algorithms are similar and therefore methods used to panic it are also similar.

    I dabbled in the notion of generating an online autotrading service in 2004, however after looking at the potential of the coding I realised the security problems of using such algorithms, I also had a long comparison with already operating "Simulated market" games that actually trade real volumes on the real market, that meant the players themselves were actually making demographically defined decisions for brokerages.
     
  13. Search & Destroy Take one bite at a time Moderator

    Messages:
    1,466
    90%+ of all trades are made through automated systems like you're asking about. You can find lots of trading robots online but they are all scams. Best you do homework and learn to trade on your own first, and then you can work on coding one out to save you time. The best algos are neuro based, and there's a lot of money moving in development for these. There are very profitable algos on the market today, but people without great connections will never see them.
     
    Last edited: Dec 7, 2011
  14. Mind Over Matter Registered Senior Member

    Messages:
    1,205
Thread Status:
Not open for further replies.

Share This Page