Knight BLOWS UP with Algo Trading Software

[bakrob99 11]

Hey .. I guess it's not all good for the algos and they can screw up too.

 

Blames the software. Who was watching it?

 

http://www.vancouversun.com/business/Technical+issue+Knight+Capital+reverberates+through+market/7028642/story.html

[Obsidian 10]

read an article some days ago saying that error cost $440million and now at risk of bankruptcy...can't believe that they trust so much to these type of computer programs

[bakrob99 11]

That is what their business is. They have done well and typically represnet 10% of the share volume earning over $119 million but they made a software change and lost a bundle in a very short time.

 

It might be tough to actually test in real terms - but shouldn't they have a shutdown procedure that comes in before $440 Million down for the day !!

 

Unbelievable.

 

Anyway - I am kinda happy that the algo guys can screw up and are not winners every time.

[Obsidian 10]

well stupidity hurts.....

[Mysticforex 13]

Yo err is human, to really screw up you need a computer.

[bakrob99 11]

Interesting article on the whole Knight issue and how it affects the market, Interesting that all this buying in 45 minutes did not drive the market to an extreme.

 

See: Knight's Berserk Algo Bought $2.6 Million Worth Of Stock Every Second | ZeroHedge

 

This link explains what actually happened:

http://www.zerohedge.com/news/explaining-knightmare

[SIUYA 11]

update.....turns out it had happened before

 

Knight $440 Million Loss Sealed by New Rules on Canceling Trades - Bloomberg

[Obsidian 10]

update.....turns out it had happened before

 

Knight $440 Million Loss Sealed by New Rules on Canceling Trades - Bloomberg

 

can't find anything to say to their programmers...

long tradeworx, short knight :rofl:

[bakrob99 11]

more BS on top of a pile of BS ...

 

check out Knight Blames Trading Fiasco On "Dormant Program" Glitch | ZeroHedge

[BlueHorseshoe 10]

Dear Knight Capital,

 

I wrote the following algorithm to assist you in your recovery and return to profitability:

 

For programmer=some to all Begin

If programmer<=dogshit then
donotemploy=true;

End;

 

Hope it helps,

 

BlueHorseshoe

 

ps. there's no need to keep it secret - everybody else already knows!

Edited August 15, 2012 by BlueHorseshoe

[Obsidian 10]

Dear Knight Capital,

 

I wrote the following algorithm to assist you in your recovery and return to profitability:

 

For programmer=some to all Begin

If programmer<=dogshit then
donotemploy=true;

End;

 

Hope it helps,

 

BlueHorseshoe

 

ps. there's no need to keep it secret - everybody else already knows!

 

they could hire you and save $440 mil/year

[BlueHorseshoe 10]

they could hire you and save $440 mil/year

 

Despite my sarcasm I'm no programmer - you only have to take a look at the number of stupid questions I ask over in the easylanguage forum to see that

 

Not that I'm saying no to the $440 mil however . . . You don't know anyone in HR at Knight by any chance, do you? :rofl:

 

BlueHorseshoe

[Obsidian 10]

Despite my sarcasm I'm no programmer - you only have to take a look at the number of stupid questions I ask over in the easylanguage forum to see that

 

Not that I'm saying no to the $440 mil however . . . You don't know anyone in HR at Knight by any chance, do you? :rofl:

 

BlueHorseshoe

 

thank god I don't :rofl: