Streams

Episode #40

Bringing Wall Street's Speed and Algorithms To Any Investor

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Tuesday, June 25, 2013

In the early nineties Wall Street started to automate the trading process. Today, many Wall Street firms make thousands of trades a second from computer terminals, not the floor of the stock exchange.

In recent years, glitches in software programs used to execute these high-speed computerized trades have led to scary swings in the market on occasion

Nevertheless, deployed properly, complex algorithms can give traders an advantage.  But as they are also expensive and complex, it may come as no surprise that big Wall Street firms are the only ones that can afford the latest technologies and the "quants" behind them.  

This week on New Tech City, reporter Galen Druke introduces us to a local company that wants to give everyone a chance to trade fast — and maybe take back some power from the larger players on Wall Street. 

Plus, we meet a serial entrepreneur working in tech here in New York who calls himself "Overworked Asian." Andrew Young talks to host Manoush Zomorodi about what it's like to watch your start-up fail and then start over. 

"There's so much opportunity out there to really continue on reinventing yourself and building something that other people need," he says.

Hosted by:

Manoush Zomorodi

Produced by:

Wayne Shulmister and Daniel P. Tucker

Editors:

Charlie Herman

Contributors:

Galen Druke
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Comments [1]

Ned Boyajian from New York City


Great story on automated trading. I checked out Quantopian’s website. It’s surprisingly user friendly, and it was fun to backtest the sample algorithm and see how it would have performed in the past.

You mentioned that individual traders are approaching this technology cautiously. What impact will algorithmic trading “for the masses” have on the stock market, if this really catches on? Will it cause even more volatility, or might a larger number of competing algorithms and a wider distribution of power have a stabilizing effect? I’d love to hear more analysis of that.

Jun. 30 2013 04:26 PM

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