Breaking the Stock Market

Tuesday, July 10th, 2007 by Pat

I don’t really know what I’m talking about here but I’m not going to let it slow me down too much. I talked to this guy a few weeks ago who writes software for a living. It’s like the software assistants you can buy to help you play internet poker except his software buys and sells stocks for you.

Makes sense to me, the stock market is kind of like poker. You want whatever edge you can get when making your investments but what happens when everyone is using little stockbots to buy and trade? Does the market become more predictable or less predictable? Does reality matter anymore or will companies just surge and fall as robots pump money in and out of the rolling waves of trade?

When everyone is trading with robots will it be possible to game the system and play the robots to the advantage of a particular business? What if you know what parameters the software looks for when making investments? Can you spin a little robot net and use your startup to capture a huge amount of automatic capital?

I guess I just have a lot of questions about what the robots are going to want from us when they take over the world.

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