Computerized Trading

[secondmouse 10]

Hi everyone - Quick question: Are there markets that are less susceptible to the effects of computerized robot trading?

[Do Or Die 10]

Hi everyone - Quick question: Are there markets that are less susceptible to the effects of computerized robot trading?

 

Yes ofcourse. For example the Pakistani Stock exchanges are not susceptible to... because regulators there do not allow co-location and program trading.

 

OK I was just kidding. The effects of such electronic trading may effect only sub-minute scalpers. I mean US markets are good enough.

[secondmouse 10]

Yes ofcourse. For example the Pakistani Stock exchanges are not susceptible to... because regulators there do not allow co-location and program trading.

 

OK I was just kidding. The effects of such electronic trading may effect only sub-minute scalpers. I mean US markets are good enough.

 

 

Hmmm...Maybe I should rephrase, and be more specific. From the little that I know (which is quite little), at least some of the whipsawing that occurs in the ES can be attributed to computerized trading. What I'm trying to determine is if there are some markets (say for example, grains) where this type of trading doesn't occur as much.

[Elitny 10]

 

Hmmm...Maybe I should rephrase, and be more specific. From the little that I know (which is quite little), at least some of the whipsawing that occurs in the ES can be attributed to computerized trading. What I'm trying to determine is if there are some markets (say for example, grains) where this type of trading doesn't occur as much.

 

 

 

A commodities market would be a lot harder to write a program, but I don't doubt that they are out there. A signal such as unusual volume would be a pretty easy tip off.

[Tradewinds 12]

at least some of the whipsawing that occurs in the ES can be attributed to computerized trading. What I'm trying to determine is if there are some markets (say for example, grains) where this type of trading doesn't occur as much.

 

I couldn't tell you the technical aspects of why the whipsawing occurs on the ES, but it seems to occur at major news events. So make sure you know when scheduled news releases are coming. Those huge price whipsaws that happen suddenly often define the short term high or low. So there is information to be realized from those events.