Human Traders are an Endangered Species!
That prescient title is a quotation from a presentation given by Professor Dave Cliff of the University of Bristol at the Innovation and Algorithmic Trading conference hosted by LMAX at University College London at the end of February. I was sat at the front throughout Dave's talk, and I found myself laughing frequently. Perhaps for that very reason any shots of the back of my head have been left on the cutting room floor in the videos that have just been made available on the LMAX Trader community website. Here's Dave's extremely interesting and even more amusing presentation from that event on the subject of "Robot traders and evolving markets":
Here are Dave's take aways (at around 27:00) to try and tempt you to watch the whole thing from start to finish. You won't regret it, I promise!
- Algorithmic trading is here to stay
- Human traders are an endangered species
- Machine optimised algorithms are the future
- The global financial markets are a large scale complex IT system
- A wind tunnel is a useful thing… but it tells you nothing about whether Gower Street will be congested at 5 PM
- We need system level simulations too
Here's the UK Government project that Dave refers to at the end of his talk – Foresight Project on The Future of Computer Trading in Financial Markets and here's why he thinks it's important:
As far as I know no one has a tool for measuring tail risk at the systemic level (32:45)
That is no joke!
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