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Archive for November 14th, 2008

are there any absolute truths?

if “no”, then is that an absolute truth?

Refer to Tarski’s Undefinability Theorem.

I enjoyed this guys write up on some details of the theorem.

or maybe you want to play with coherence theory?

or maybe you should just see how others arbitrage the search for truth in pursuit of google rank!

hahahahah.

peace.

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In the area of algorithmic trading alone, industry estimates by the Aite Group predict
that by 2010, 50% of U.S., 28% of European and 16% of Asian order flow will be executed automatically via trading algorithms [1]. With about 8.5 billion shares currently being
traded daily in the US this would equate to the automatic trading
of $120 billion of stock in current money terms.

* [1] Algos 3.0, Developments in Algorithmic Trading, Traders Magazine 2007. Special Report.
SourceMedia’s Custom Publishing Group.

Computational Intelligence Magazine, from IEEE

For a very general overview of Algorithmic Trading, hit this Wikipedia entry.

If you want sort of an “insiders look” at all this, head over to Advanced Trader magazine.

To see the very limited amount of research on the impacts, check out these various book resources:

Google Books on Algo Trading

Amazon

I’ve seen almost no analysis of how algo trading impacts economies.  WIth 30-50% of the money changing hands in the stock market every day based on these algos, it would seem highly improbably that algo trading isn’t a significant departure from traditional/human-based trading behavior.

How much of these wild stock swings are the result of velocity algos going nutso?

How do we verify the algos do what we want?

Also note that the average trade size has dropped from 1200 to 300 – this matters a lot.  Large volume trades typically are indicators to human traders.  With large trades vanishing, the data stream is different than it used to be.

If someone has some clear, understandable research (not HowTos) on algo trading theory, send it along.

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Well, we knew it would come.  We just didn’t know when.

Google Voice Search is coming… (here’s the story on mashable)

Here was my concept for “Google Aware” (which I never claimed was original… in fact, i think it’s an obvious extension to many technologies).  I should have finished it.  Oh well.  Sometimes great ideas are just damn hard to pull off with limited time and marketing resources.

One of the key points in the NYTimes article is the fact that Google has the ability to analyze all the data coming through that pipe and that will be what makes the difference in quality.  Just recognizing voice and passing it to search isn’t that tough… (heck even I can code that with some libraries).  It’s training this system over time.

Anyhoo.  Cool stuff.  Everything Computes!  It’s happening.

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