Tag Archives: Tradeworx

Nasdaq and Tradeworx to launch test HFT facility for algorithms based around on quant

Nasdaq and Tradeworx to launch test HFT facility for algorithms based on quant. Like submitting source code to Apple before Itunes?

This is a weird combination. This makes me the think on the credibility of the NASDAQ with all their foolish botches like the Facebook IPO. And now this? To me, this does not legitimize NASDAQ in any way to be affiliated with this media hound Manoj Narang and his company. I have been told many proper exchanges will go through your algorithm source being submitted to be allows to trade on an exchange. I could be wrong but it would make sense as no different before you submit your app to Apple before getting released on the Itunes store. I thought this process was already in place but I guess. Again thanks to my NYC source for this new tip.

http://www.reuters.com/article/2013/10/09/nasdaq-tradeworks-algos-idUSL1N0HZ17R20131009

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Bloomberg interview: Manoj Narang of Tradeworx says HFT was not to blame the flash crash

 

Bloomberg interview: Manoj Narang of Tradeworx says HFT was not to blame the flash crash

This came in from my usual NYC source so thanks to them. To me, this guy always comes off always trying to be the mouthpiece of the  secretive HFT shops. He just seems to be some guy looking for media attention aka glory hound.

http://www.bloomberg.com/video/69446228-tradeworx-s-manoj-narang-interview.html

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Youtube video quant opinion: Is Manoj Narang of Tradeworx trying to be the unspoken official rock star of quant and HFT?

Youtube video quant opinion: Is Manoj Narang of Tradeworx trying to be the unspoken official rock star of quant and HFT?

Let me know what you think from this posting:

Is Manoj Narang of Tradeworx trying to be the unspoken official rock star of quant and HFT?

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!

Tradeworx CEO Manoj Narang Defends HFT

Tradeworx CEO  Manoj Narang Defends HFT

Manoj Narang has a vigorous defense of HFT in this post. Obviously he’s biased, given where he works, but he also has some key data that appear to show increases in market volatility are biggest during after-hours trading when high-frequency traders are not active. It doesn’t automatically follow from that that volatility during the trading day is NOT due to HFT, but it’s a pretty good prima facie case. What do others think?

highfrequencytradingreview.com

This is a Guest post by Manoj Narang, Founder and CEO of Tradeworx Inc In recent months, a plethora of articles have remarked on elevated levels of market volatility, while simultaneously pointing out that computers generate an…

 

When discussing issues concerning HFT, there are really two things that come to mind for me, volatility and efficiency. First, HFT allows for faster incorporation of new information into prices. In other words, the shorter the timescale of the transactions the more informationally efficient the market becomes. So it can be argued that HFT produces greater market efficiency. With regard to volatility, there are good arguments for both sides, some say that there is increased liquidity provided by HFT which has some smoothing effect and there are others that have concerns that HFT algorithms can run amok and cause wild swings in volatility due to a lack of human oversight. The first argument does have merit, and the second has been seen in a different form from wild product pricing on Amazon due to unsupervised algorithms (seehttp://www.michaeleisen.org/blog/?p=358).

Personally, I am in favor of HFT and do not believe that what I consider “wild” volatility is solely the product of HFT gone awry.

Thanks for the response. I think you may be confusing a couple of concepts, or using words that I’d use differently. For example, what do you mean by “informationally efficient?” The HFT that I’m familiar with does not take in traditional market information.

In addition, I’m not sure it’s a good apples-to-apples comparison to talk about Amazon’s pricing algorithms. I see the analogy, but I’m not aware of market pricing problems caused by “unsupervised algorithms”. It may be (and really, always has been) the case that a large trade sent to market will affect the price. Part of the purpose of a well-designed algo is to eliminate or at least minimize the impact on the market price of the trade the algo itself is executing. There are certainly situations in which two or more strategies may interact in unexpected and negative ways, but the markets are generally open to all licensed or sponsored traders, whereas Amazon bears sole responsibility for the misbehavior of its pricing strategies.

 

I apologize for any misunderstanding, please allow me to clarify. When I
talk about informational efficiency, I am speaking of the speed with which
new information is reflected in the market price. Using this definition,
the shorter the time between information availability and price adjustment,
the smaller the opportunity to profit from having knowledge of that
information (whether human or machine has said knowledge). HFT comes into
the picture because a system is presumably based on some sort of trading
rules, otherwise all you have is an incredibly fast dartboard-style stock
trading machine. These systems inevitably react to market activity and
whether those movements are initiated by the HFT systems or human traders,
my conclusion is that HFT can assist in the rapid adjustment of prices. In
other words, no matter who gets the ball rolling, the price will adjust
faster with HFT presence. There is disagreement on this point, but there
isn’t any empirical data that currently exists which demonstrates a
negative effect on the price adjustment process by HFT (see page 27 of
report linked in next paragraph).

There have certainly been cases of erratic market behavior and pricing
problems due to HFT, as noted on page 11 of the report “Regulatory Issues
Raised by the Impact of Technological Changes on Market Integrity and
Efficiency” released by the Technical Committee of the International
Organization of Securities Commissions in July of this year (see
http://www.iosco.org/library/pubdocs/pdf/IOSCOPD354.pdf
<http://www.iosco.org/library/pubdocs/pdf/IOSCOPD354.pdf> ). In chapter 5
of the report, which begins on page 41, it is mentioned that “…whilst
algorithms and HFT technology have been used by market participants to
manage their trading and risk, their usage was also clearly a contributing
factor in the flash crash event of May 6, 2010.”

With regard to the Amazon example, I am not sure whether the algorithmic
pricing error was the fault of Amazon. The problem may have been related
to a third-party price management system used by sellers. There have been
such tools available to manipulate auction results on eBay for many years
so that kind of situation is not unusual. Whether the pricing problem was
the result of Amazon algorithms or third party software, it’s a relevant
case where automated mechanisms involving price or trades can have
unexpected results if appropriate safeguards are not in place.

I hope the above clarifies my earlier post and I apologize for any
confusion. If that didn’t help please let me know and I’ll try to explain
myself using some different examples or terminology.

 

 

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Is Manoj Narang of Tradeworx trying to be the unspoken official rock star of quant and HFT?

Is Manoj Narang of Tradeworx trying to be the unspoken official rock star of quant and HFT?

This guys who seems to everywhere press wise from CNBC, PBS, 60 Minutes, etc. He is obviously some press glory hound

trying to be some spokesperson of this word known as quant and HFT. It gets kind of scary when you see him everywhere.

He is obviously pretty smart to graduate from MIT but let’s face it, the everyday person is not going to pick up

quant in a day with the heavily advanced math algorithms that Einstein may be challenged with.

His firm is now commoditizing the world of high frequency trading. The sister company known as Thesys Technologies LLC  is also selling its infrastrcture to the highest takers. Also, he is offering individual investors (on his site):

Tradeworx Power Tools for Individual Investors

So do we need to worry? Is this guy a glory hound or just making extra money off his work with Tradeworx trading infrastructure. It does not seem to be anything earth shattering. It contains:

The following skills are preferred but not required:

Proficiency in Unix, Linux, and/or BSD programming, C/C++/STL, Python, bash, Awk,

TCL/Tk, Perl

This was from a job description off the site.

I have to give this guy props for being in the game early. In 1999, he got over $1.2 million in funding for his tools. He also says:

“Everything is just geared toward day traders. The reason they don’t make any money is that they’re paying for these transaction costs again and again,” he says.

“Transaction cost” is a sophisticated trading concept related to market timing and other factors, Mr. Narang says.

http://www.redherring.com/Home/9932

According to Linked In, Manoj’s entire career was Goldman Sachs as a VP and then launched Tradeworx.

If this is correct, the following salaries don’t really excite me:

Title Employer Salary Location / Date / Further Info
Software Quantative Analyst Tradeworx $80k Red BankNJ (03/2007) 

salary of the position in NJRed Bankthis employer
employers of the positionjobs of the employer

Quantitative Analyst Tradeworx $90k Red BankNJ (03/2007) 

salary of the position in NJRed Bankthis employer
employers of the positionjobs of the employer

Software Quantitative Analyst Tradeworx $80k Red BankNJ (06/2009) 

salary of the position in NJRed Bankthis employer
employers of the positionjobs of the employer

Senior Quantitative Analyst Tradeworx $120k Red BankNJ (06/2009) 

salary of the position in NJRed Bankthis employer
employers of the positionjobs of the employer

Senior Quantitative Analyst Tradeworx $125k Red BankNJ (06/2009) 

salary of the position in NJRed Bankthis employer
employers of the positionjobs of the employer

http://www.jobs-salary.com/tradeworx-salary.htm

In another job description, there is some advanced development needs:

Must be proficient in Unix, Linux, and/or BSD programming, including C/C++/STL and,
ideally, two of the following languages: Python, bash, Awk, TCL/Tk, Perl.
? Linux kernel programming and/or device driver development knowledge a big plus.
? Experience in network, parallel/distributed, multithreaded, and/or FPGA programming will be a
plus.

Must be proficient in Unix, Linux, and/or BSD programming, including C/C++/STL and,ideally, two of the following languages: Python, bash, Awk, TCL/Tk, Perl.? Linux kernel programming and/or device driver development knowledge a big plus.? Experience in network, parallel/distributed, multithreaded, and/or FPGA programming will be aplus.

Some more job descriptions of what is used at Thesys:

Highly qualified BS, MS, and PhD graduate from top programs in Math, Physics, CS, EE, Bio, and Chem

  • 5-10 years of related work experience (Financial industry experience is NOT a requirement)
  • Must be proficient in Unix, Linux, and/or BSD programming, including C/C++/STL and, ideally, three of the following languages:  Python, bash, Awk, TCL/Tk, Perl, SQL.
  • Experience in the following are not required, but beneficial:
    – Network, parallel/distributed, multithreaded programming
    – Apache
    – VWAP or other algorithmic trading system

VWAP huh?

http://www.thesystech.com/career.htm

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