Algorithmic Trading

Famous Twitter "Trader" Arrested For Stealing $1.5 Million, Running A Ponzi

Randy Rye told investors that they would earn substantial profits from his proprietary trading program. In reality, Rye misappropriated the investors’ funds for his own personal expenses, such as air and hotel travel costs, including vacations to St. Lucia and Bali, tickets to sporting events, including the World Series and the Masters golf tournament, and on other luxury items and large cash withdrawals.

The A.I. Economy: "Why The Market Never Crashes"

"Things are not what they seem; it isn’t your granddaddy’s financial market. Real money no longer exists, and the rest of us are trapped inside of a system of debt slavery, fake news and bad info, and rule by fake money."

"Metals Traders On Red Alert" - Chinese Commodity Bubble 2.0 Just Imploded

Industrial metals commodity prices plunged by the most since March in the last 2 days as China’s exchanges (once again) clamped down on speculation by tightening trading rules. As Bloomberg reports, for the second time this year, trading has exploded on the nation’s exchanges, pushing prices of everything from zinc to coal to multi-year highs and sending authorities scrambling to deflate the bubble before it bursts.

FX Trading By Hedge Funds And Prop Traders Tumbles 30% Over Past Three Years

What was most striking in the latest Triennial BIS survey, was the shrinkage in FX trading by hedge funds and proprietary trading firms which fell by more than 30% over the past three years. The shrinkage in the share of FX trading by these investors is likely the result of regulatory pressures and FX rigging investigations which caused significant retrenchment by FX prop desks.

Spoofing Trader Who Outsmarted Citadel And HFTs Gets 3-Year Jail Sentence

Michael Coscia, the first person convicted of spoofing after it was made a crime under the Dodd-Frank Act, was sentenced to three years in prison by a federal judge in Chicago. His real crime? Taking on the HFTs, and Citadel, and winning. Now he gets to spend 3 years in prison thinking about it. And let that be a lesson to anyone else out there who dares to do the same.

The Biggest Bitcoin Arbitrage Ever?

"Can any of the Joe Sixpacks out there who’ve invested in this Bitcoin ETF to provide us a borrow as shorting it is not currently available..."

"Sell In May" ... And June

"Sell in May and go away" -- the old equity-market adage still holds water, but, as Bloomberg's Mark Cudmore explains, it's important to note how the seasonals have evolved since the great financial crisis.

"The Liquidity Just Dries Up In A Stressed Market" - How HFT Killed FX Trading

Collin Crownover, head of currency management at State Street Global Advisors Inc., which oversees about $2.4 trillion,  who during a panel presentation said that "we are concerned. During volatile periods, market participants are backing away until conditions settle down, making it harder to complete large orders."“A lot of the electronification of the market, which by and large is a good thing, has led to kill switches on a lot of that algorithmic-provided liquidity,” Crownover said. “The liquidity just dries up in a stressed market.”