Tuesday, May 11, 2010

FLASH CRASH : ALGORITHMIC GROUP THINK + HIGH SPEED, HIGH VOLUME TRADES

The Flash Crash was clearly caused by the New Trading systems...

Black Boxes using the same basic algorithms... in a high volume high frequency trading environment...are a formula for a Flash Crash...

Essentially...the market has become a video game where only professionals are important...and they all think alike...

Perhaps the real problem is that markets are NOT that complicated and ismart people can and do come to the same conclusions quickly...