Man vs. Machine

Man vs. MachineWhat is Auto-Trading?

Attention

Manipulation

Goldman had engineered every major market manipulation since the Great Depression - and theyre about to do it againRolling Stone, May 2009

May 2009 a former computer programmer at their Wall Street headquarters had been charged with using sensitive computer codes to steal trade secrets. The codes are core to Goldmans' algorithmic trading systems.The bank's lawyer made the statement that this raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways.

A computer-implemented system and method for executing trades of financial securities according to a combination passive/aggressive trading strategy that reliably executes trades of lists of securities or blocks of a single security within a desired time frame while taking advantage of dynamic market movement to realize price improvement for the trade within the desired time frame. A passive trading agent executes trades at advantageous prices by floating portions of the order at the bid or ask to maximize exposure to the inside market and attract market orders. An aggressive agent opportunistically takes liquidity as it arises, setting discretionary prices in accordance with historical trading data of the specified security.

FACTS26% EXECUTED BY NYSEExchange that doesn't have to report WHO is trading and HOW MUCH they are trading10 PUBLIC EXCHANGES30 DarkPools

200+ internalising broker-dealers

Is this BAD News for us?

Traders will lose their account within 1 yearOf People will be profitable by themselves

95%

5%