Man Vs Machine: How Each Sees The Stock Market

Tyler Durden's picture




 

What you see with one min bars:

What the algos see in 9.5 seconds:

Courtesy of Nanex

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Tue, 04/03/2012 - 18:16 | 2314777 PSEUDOLOGOI
PSEUDOLOGOI's picture

All your Stock Markets are belong to us.  bitchez!

Tue, 04/03/2012 - 18:39 | 2314845 iDealMeat
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Good to see BATS all up and runnin..   nothing to see here.. move along..

Tue, 04/03/2012 - 18:45 | 2314862 12ToothAssassin
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Someone set up us the Algo

Make your time

Tue, 04/03/2012 - 19:25 | 2314973 Short Memories
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So... the Algos can't see the "event bar" ?

 

;)

Tue, 04/03/2012 - 19:35 | 2314996 Cdad
Cdad's picture

Indeed...what we don't see is the key.  And nine times out of ten, at the "event point" on the example chart, you will not see any volume, either.  And despite rules requiring trades to be posted within 90 seconds, you might not actually see that volume on the chart for days.  I know of a couple instances where shares sold NEVER made it to the NYSE consolidated tape.

The Nanex boys do a great job providing visual aides revealing the HFT criminal activity all over the markets.  One day, Mary Schaprio over at the SEC will actually want to stop having meetings with Goldman Sachs and JP Morgan [about how she should forget SEC regulations all together] and actually attempt to enforce some market integrity...so that the market does not have to collapse to zero to eventually make the point that the MARKET IS COMPLETELY ABSURD and BROKEN!  Fucking DUH, M. Schapiro! 

Tue, 04/03/2012 - 20:29 | 2315101 Mactheknife
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Whaaaaat??  And give up that "job" waiting on her...you know the one with the stock options and the corner office and the bonus....really? After all she's done for the boys....really?

Wed, 04/04/2012 - 06:09 | 2315661 AldousHuxley
AldousHuxley's picture

that was a POOR man vs. RICH machine comparison.

 

even retail brokers offer sub-minute chart timeframes...

 

pretty soon retail traders would be able to trade on Goldman Sach's old high frequency trading platform courtesy of Sergey Aleynikov who claims it is "open source"

 

According to goldman sachs, "there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways." Aren't GS traders already users of this program?

 

http://dealbook.nytimes.com/2012/02/17/justice-dealt-setback-in-case-aga...

Wed, 04/04/2012 - 10:18 | 2316218 mickeyman
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It's a little known fact that HFT was invented by Al Gore. Hence the term "algos".

Tue, 04/03/2012 - 20:33 | 2315108 highwaytoserfdom
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What do you expect?  Look at Spitzer and his 5k sexcapades. The whole police state of the FBI monotoring his money taken for human weakness....  when Spitzer fought New York Stock Exchange Chairman Richard Grasso's 180m dollar pay package...  Never mind the 11b dollar sunguard club deal...controling the exchange systems     Schaprio Cox Nazerath, Bush Obama, Paulson  BROKE THE LAW The Prompt Corrective Action Law (PCA) – 12 U.S.C. § 1831o – not only authorizes the government to seize insolvent banks, it mandates it.   JP MORGAN FRONT RAN THE FED LAST WEEK.. Yea boy TARP goes to "reserves to banks to not lend" and push a stock buyback in 2011 AND last week with printed not earned money..Costing debt to taxpayers...    NO WE ARE LAWLESS.. Face it   Leges sine moribus vanae. In English: Laws without character are worthless...     

Tue, 04/03/2012 - 20:42 | 2315128 Atomizer
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Bulls On Parade - Rage Against The Machine

 

Shhhh. Just go back to sleep and drool from your mouth.

Tue, 04/03/2012 - 22:05 | 2315152 EverythingEviL
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Epic band. Zach and Tom were way ahead of their time. Have seen them many times in concert and it still gives me chills watching this. Thanks!

Tue, 04/03/2012 - 22:23 | 2315273 fockewulf190
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"Aaaannd its gone!"

"What?!"

"Move out of the way son, this line is for people with money in this bank!"

Wed, 04/04/2012 - 02:34 | 2315549 The Big Ching-aso
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This phucker's gonna do a HAL 9000 exit sooner or later.  BTW where in the hell's Dave?

Wed, 04/04/2012 - 08:42 | 2315891 Dave
Dave's picture

I'm here, where are you?

Wed, 04/04/2012 - 08:43 | 2315894 Dave
Dave's picture

I'm here, where are you?

Wed, 04/04/2012 - 08:44 | 2315899 Dave
Dave's picture

I'm here, where are you?

Wed, 04/04/2012 - 08:45 | 2315900 Dave
Dave's picture

I'm here, where are you?

Wed, 04/04/2012 - 19:33 | 2317952 Sokhmate
Sokhmate's picture

you're everywhere and nowhere like something they taught us about. sheeet.

Wed, 04/04/2012 - 03:46 | 2315601 The Navigator
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odds about as good as buying a mega lottery ticket - either way you and I lose.

Tue, 04/03/2012 - 21:07 | 2315166 ChrisFromMorningside
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The federal government has been hijacked.

At the patrician level, it's been hijacked by a cartel of multinational banks who are in the process of robbing and asset-stripping this nation 15 trillion ways from Sunday.

At the plebeian level, it's been hijacked by unions that only care about getting "theirs," even if it means bankrupting the public treasury in the process.

Tue, 04/03/2012 - 23:02 | 2315338 MagicHandPuppet
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People have been hijacked by governments for a very long time.

Wed, 04/04/2012 - 03:56 | 2315605 The Navigator
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"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered...I believe that banking institutions are more dangerous to our liberties than standing armies... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." -- Thomas Jefferson

We the sheeple, haven't learned shit - there it was, right before our eyes, the truth, but we choose to ignore it, and in the process we fucked ourselves and our childrens future. Now, the fight is gonna be hard and long, with many lives lost to reclaim what was ours, a gift from our forefathers who had fought a battle against the greatest army/navy at that time. Step 1 is not grab a rifle and shoot - step 1 is bring your neighbors, friends and relatives into the light, educate them - we need more than 3%.

Tue, 04/03/2012 - 23:52 | 2315410 earleflorida
earleflorida's picture

Quote: 

"Crime is contagious. If a government becomes a lawbreaker, it breeds contempt for the law; it invites every man to become a law unto himself... To declare that the government may commit crimes in order to secure the conviction of a private criminal --- would bring terrible retribution."

Justice Louis Brandeis, Olmstead v. United States. 1928

Ps.    Ford pardons Nixon - time for the country to move on? What bullshit!

Ps2.   Reagan should have been impeached - Iran-Contra & NPT lying to Congress?

Ps3.   Bush #43 should have been impeached for destroying the very word of the U.S. Constitution - literally lying to congress while shredding the "Bill-of-Rights" - a 2fer!

Note: But, what do they do to Clinton when a man has a weak moment, destroy him, and make his last years in the WH impossible to administrate.

Were Fucked, whomever gets in the WH. Romney will take us into war immediately, and Obama will finish off our civil liberties. Just sucks,...

jmo 

Wed, 04/04/2012 - 00:42 | 2315479 FrankThinkTank
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Let's not forget Carter and the CRA, or Clinton and Glass-Steagall Section’s 20 and 32, you partisan pinhead. 

Wed, 04/04/2012 - 06:37 | 2315664 slowimplosion
slowimplosion's picture

The CRA had ZERO to do with this mess and onlly an idiot who listens to certain talk radio and actually believes it would think otherwise.

 

All that property in FL, NV, GA etc did NOT go to low income unqualified borrowers, it was 90% tract mansions for the middle class and above.

 

As for Glass-Stegall, that was much more of a Republican dedregulate, deregulate degregulate deregulate degreulate iniative than some kind of Clinton one.  He merely signed what the degrgulate TARDS demanded year after year after year.

 

Clinton made PLENTY of serious mistakes.  Why don't you identify those, and I will agree with you.

Wed, 04/04/2012 - 03:19 | 2315589 dogbreath
dogbreath's picture

yup clinton was a well known horndog.    I view these big political media circuses as an opportunity for TPtB to keep the sheeple distracted in case benafir and branjelina aren't doing their job.  meanwhile the rapeing and looting continues

Tue, 04/03/2012 - 21:59 | 2315230 overbet
overbet's picture

You know how CNBC employees are forbidden from owning stocks, well if you have worked at a government agency you should be prevented from ever working at a broker dealer. They should also pay the SEC enforcment division people a percentage of the corruption they take down. Then we would see them go after the big crooks and not the guy who made $2500.

Wed, 04/04/2012 - 00:30 | 2315462 Isotope
Isotope's picture

Good idea for the SEC people.

Problem is, it's not worth your life.

People have been killed - I mean have committed suicide - for less.

Wed, 04/04/2012 - 00:46 | 2315482 iinthesky
iinthesky's picture

Not really a problem.. IRS does it on the other side of the coin and congress has authority to do stuff like this with its power to issue letters of marque and reprisal. You would see a whole new form of bounty hunter appear on the scene. Serious retribution! Problem really is that the law has become irrelevant. They do whatever they want, damn the law. Maybe they just cant be bothered reading all 50 gazillion statutes and modifications of statues that come every day from unelected scum.

Wed, 04/04/2012 - 11:13 | 2316444 citta vritti
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"letters of marque and reprisal" - excellent. only thing, they currently go by a different name: bank charters

Tue, 04/03/2012 - 23:27 | 2315373 Vint Slugs
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@Cdad

"...visual aides revealing the HFT criminal activity..."

Please elaborate.  I'd like to know what's criminal about running a bot trading system.  Thx.

Btw, if you're not up to speed one of the 3 major areas of ongoing technological advance is robotics (the other 2 are in genetics and nanotechnology).  There is no way, short of a systemic socio-economic collapse, that those 3 areas are not going to experience exponential growth in the next decade.  HFT (robotics) is just the initial phase (because it's the easiest initiated via software) in that evolution.

Wed, 04/04/2012 - 05:40 | 2315647 dvsteenk
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Do you deny the statement that HFT are frontrunning trades, pretty much like in a casino where one player has a continuous view on what cards other people are holding or about to throw on the table? In a normal casino, this is considered illegal.

I'm not saying they're all criminal, but the ones that frontrun and cheat on people are.

To defend HFT just because of the sheer beauty of the science behind the algo's (or genetics, hi-tech) without any consideration for ethics is deplorable

Wed, 04/04/2012 - 08:30 | 2315865 centerline
centerline's picture

Your kidding about asking what is wrong with this?

Spend some time reading up on the various algos that do nothing positive for the market - they just game the system in various ways to skim money out of the system.  A few bots here, a few bots there, and pretty soon the market is getting clobbered on a regular basis across indexes and major stocks held by so many people.  A "tax" on the system.  Not to mention the risk (flash crash... remember that?) of all this bullshit creating false liquidity... it's not liquidity, it is just volume.  Fucking crooks locate the servers as close as possible to the exchanges to get every edge possible in terms of timing.  Sound fair to you?

 

Tue, 04/03/2012 - 21:31 | 2315184 BLOTTO
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Ghost in the fuckin Machine

Tue, 04/03/2012 - 21:44 | 2315208 The Big Ching-aso
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When's that tall skinny ET cracker gonna tell this thing to, "Klaatu barada nikto", already?

Wed, 04/04/2012 - 08:47 | 2315906 Cash-NonCash
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For Great Justice

Tue, 04/03/2012 - 22:11 | 2315250 oogs66
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Nanex should sell it as modern art

Wed, 04/04/2012 - 01:02 | 2315497 Dragonsgrace
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I just want to know if the Algo Machine can get a date on "successful men,com?" 

Wed, 04/04/2012 - 09:35 | 2316064 WhiteNight123129
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Pull the power plug and watch if the algo survives, give it some water and potatoes and some silver for barter and check if your computer algo is alive and well with that. 

Tue, 04/03/2012 - 18:16 | 2314778 sunaJ
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I see dead people.

Tue, 04/03/2012 - 18:24 | 2314798 Divided States ...
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Effin bots sees the next tick before it even happens..

Tue, 04/03/2012 - 18:40 | 2314848 francis_sawyer
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Where's the quadruple "Evel Knievel" formation?

Tue, 04/03/2012 - 19:06 | 2314911 Unprepared
Unprepared's picture

It's as beautiful as the scenes of Baghdad getting bombarded at mid-night.

Wed, 04/04/2012 - 05:06 | 2315630 Zero Govt
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the bot doesn't 'see' anything ...it's a number crunching front runner, that's it

Tue, 04/03/2012 - 19:24 | 2314971 donsluck
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I see the messy results of mechanised masturbation. Icky.

Tue, 04/03/2012 - 21:42 | 2315213 WmMcK
WmMcK's picture

Don't knock masturbation -- it's sex with someone you love.

Tue, 04/03/2012 - 21:50 | 2315217 WeekendAtBernankes
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Or hate sex with someone you hate.

Tue, 04/03/2012 - 23:55 | 2315416 earleflorida
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i sometimes make love to myself twice a day

Tue, 04/03/2012 - 19:27 | 2314978 Caviar Emptor
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If all life ceased to exist, the bots would still pump and trade with each other. And play with themselves

Tue, 04/03/2012 - 20:02 | 2315044 AlaricBalth
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Algorithmic masturbation

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