Tag Archives: Dangers

Dangers Of Algorithmic Trading?

Has political correctness finally hit the world of quant? Watch this video to let me know as this ‘dude/bro trading expert’ claims algorithmic trading and algorithms are dangerous. Watch this video here:

Here is a description of this video found on Youtube:

In this video we’re going to talk about the dangers of algorithmic trading in the stock market. Cathy O’Neil who is a former Wall Street quant made a great video recently that describes what algo’s are. And as it turns out, they’re just opinions embedded in math… This means they aren’t objective. Whatever opinions the creator has will be expressed in the algorithm itself. The issue here is that people tend to believe that algos in the market are perfect, because it’s pure objective data. But if algo’s express the opinion of the creator, there’s a lot of room for error. In fact, algo’s can heighten that error when it’s trying to optimize. Cathy makes a very distinct that the creator defines the success of the algo. And that definition is how the creator’s opinions slip in. The creator also curates the data. That has a big effect as well. These things together start having compounding effects as the algorithm gets optimized.

Tell me what you think pls

Thanks Bryan

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!