Nums: A world of battling algorithms…

Many pundits say that the recent stock market volatility and steep decline are at least partially attributable to algorithmic trading … complex analytical models with decision rules executed in real time by computers … think: flash trading.

The current relevance prompted me to flashback to a very cool 15 minute TED Talk … my all time favorite.

In the talk, tech entrepreneur Kevin Slavin tells how algorithms have reached across industries and into every day life.

A couple of lines caught my attention:

  • There are more than 2,000 physicists working on Wall Street developing operational algorithms
  • Massive scale speed trading is dependent on millisecond read & respond rates …
  • So, firms are physically literally locating right next to internet routing hubs to cut transmission times … or, setting up shop right at the exchanges.
  • And, of course, there isn’t time for human intervention and control
  • “We may be building whole worlds we don’t really understand, and can’t control.”

Obviously, Slavin comes down on the side of the quants.

It’s worth listening to this pitch … a very engaging geek who may be onto something big.

* * * * *
Follow on Twitter @KenHoma >> Latest Posts

One Response to “Nums: A world of battling algorithms…”

  1. Rob Marshall Says:

    I would rank Flash Boys a rung or two lower than Moneyball or The Big Short…but definitely worth reading if you enjoy this topic.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s