Readings: Trading algorithms, Rupee plunge, Doom & gloom
- New Scientist: ‘Gordon Gekko’ trading bot profits from mood swings
Vytelingum has developed a new trading program that can adjust how aggressively it trades to match market conditions . . .
The new agent responds to market changes in two ways. Firstly, it can change its aggressiveness by monitoring other traders’ behaviour. If other traders are being aggressive – for example, by attempting to undercut others – it raises its game to trade even more aggressively. If trading is less competitive, the software acts less aggressively and calmly aims for the biggest profits available.
Secondly, the software can also use past market trends to try to forecast future conditions. If a period of volatility seems likely, the software changes its behaviour more frequently, meaning it is more likely to be ready to exploit any sudden switches in conditions.
- Business Standard: Rupee plunges on capital outflows
While most dealers said they did not see a compelling reason for RBI to move to the fringes, a few of them said RBI did not want to supply dollars because the fall was mostly because of offshore-onshore arbitrage. It is likely that the central bank may be expecting rupee to climb back once the arbitrage window shrinks.
“Most foreign banks were buying dollars in spot market and selling it offshore. The one-month spread was about 25 paise in the NDF (non-deliverable forward) market,” said a dealer with a European bank. According to dealers, very large UK and US banks were major buyers of dollars today.
Note that FIIs were net buyers in equities yesterday. As were DIIs. Was it the retail guy throwing in the towel?
One pink paper has stopped publishing pictures of good looking models on the front pages which are totally irrelevant to their articles.
Sadly, they no longer write those humorous articles about how market capitalisation has made India such a powerful nation.
TV channels no longer have cheerleaders waving each time the Sensex surges by 1,000 points —- there is no surge left in the market. The market is heading the other way —-solidly south. Ladies and gentlemen, I am sorry to announce the death of ‘India Resurgent’.The one billion people living in this country seemed to have rolled over and died. All of them.No one is buying any more cars, two-wheelers, mobile phones, TVs, homes, clothes, food or medicine.The 1 billion people have frozen.There is no global warming here —- we are in the Ice Age.
FWIW, I think we are way oversold and overdue for a fast & furious ‘clearing rally’. Have bought some Nifty futures to put some skin in the game. Net short though, via naked calls.
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