Study offers hope we could predict the next market crash - News and Current Events | futures io social day trading
futures io futures trading


Study offers hope we could predict the next market crash
Updated: Views / Replies:303 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Study offers hope we could predict the next market crash

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

Study offers hope we could predict the next market crash

Could rapid stock-price changes caused by computerised trading be responsible for recent stock market crashes?

A new study has analysed price logs from 60 markets worldwide, and found evidence of a pattern.

Before the stock market crash in 2008, prices of some stocks shot up and down at incredible speed, often returning to their previous levels within half a second.

The changes- which the researchers describe as 'fractures' - could be key to understanding what causes stock market crashes

They could also offer an 'early warning system' for when the markets are becoming unstable.

The 'fractures' occur so quickly they would be invisible to any human trader, existing in a world of computerised trading algorithms which make trades in milliseconds.

The same ultra-fast changes preceded another, smaller crash in 2010 - the so-called Flash Crash.

The researchers, led by Neil Johnson at the University of Miami in Coral Gables analysed 18,520 'fractures' between 2006 and 2010.

Johnson told New Scientist that ultra-fast trading systems themselves could be to blame for the crashes.

He found that 'fractures' of less than one second followed a different statistical pattern to ones of more than a second - the difference between price changes a human trader could follow and ones a human couldn't.

On shorter timescales, Johnson says, computers effectively control the stock market.

'Nobody really knows what's going on down there,' says Johnson. 'It's like the Wild West.'



The study analysed price logs from 60 markets provided by Eric Hunsader of Nanex, a Chicago-based company that sells streaming market data.
Johnson thinks that the changes could build up in the system in much the same way as an accumulation of cracks in an aircraft's wing.

'You're seeing something starting to break open,' says Johnson.
Johnson hopes to understand how 'fractures' work, and possibly use them to build an 'early warning system' for financial crashes.

'Johnson makes a compelling case,' says Dave Cliff, an expert in complex systems at the University of Bristol, UK.

'Developing his analysis techniques into methods or tools for reliably predicting crashes is a very appealing prospect.This work could turn out to be a major first step in that direction.'


Read more: Could tiny 'fracture' surges in the stock market be the spark that lights the fuse for financial meltdown? | Mail Online

Reply With Quote

Reply



futures io > > > > Study offers hope we could predict the next market crash

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Could Market Volatility Be Hiding a Flash Crash? GridKing News and Current Events 0 January 31st, 2012 09:06 PM
Expected loss in crash using market stop order Zwaen Traders Hideout 1 October 10th, 2011 03:54 PM
Market crash 'could hit within weeks', warn bankers kbit News and Current Events 0 August 29th, 2011 02:07 PM
Multicharts / predict Indicator Value Locust MultiCharts 6 March 4th, 2011 06:12 AM
Housing Woes Bring New Cry: Let Market Crash Quick Summary News and Current Events 0 September 6th, 2010 10:50 AM


All times are GMT -4. The time now is 09:00 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-14 in 0.08 seconds with 19 queries on phoenix via your IP 54.221.73.186