Da Silva, Sergio (2014): Why Not Use Robots to Stabilize Stock Markets? Published in: Journal of Stock & Forex Trading , Vol. 3, No. 2 (30 January 2014): p. 1000120.
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Abstract
Why not set up some public-service robot traders to counteract the behavior of traders when it snowballs into extreme moves? I show a blueprint of how this can be accomplished taking advantage of the theory of complex systems.
Item Type: | MPRA Paper |
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Original Title: | Why Not Use Robots to Stabilize Stock Markets? |
Language: | English |
Keywords: | Robots; Stock Markets; Algorithmic trading; Financial crashes; Flash crash; Mini-flash crashes |
Subjects: | G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation |
Item ID: | 60567 |
Depositing User: | Sergio Da Silva |
Date Deposited: | 12 Dec 2014 17:02 |
Last Modified: | 27 Sep 2019 03:23 |
References: | 1. Suhadolnik N, Galimberti J, Da Silva S (2010) Robot traders can prevent extreme events in complex stock markets. Physica A 389: 5182-5192. 2. MacDonald L (2010) Preventing bubbles with robot traders. Canadian Business, September 13. 3. Thoma M (2013) Can the Fed burst the next bubble before it’s too late? The Fiscal Times, March 12. 4. Farmer J D, Foley D (2009) The economy needs agent-based modelling. Nature 460: 685-686. 5. Edey M (2009) The global financial crisis and its effects. Economic Papers 28:186-195. 6. Staff of the US (2010) Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission. Findings regarding the market events of May 6, 2010, September 30. 7. Farrell M (2013) Mini flash crashes: A dozen a day. CNN Money, March 20. 8. Bak P, Paczuski M (1995) Complexity, contingency, and criticality. Proc Natl Acad Sci USA 92: 6689-6696. 9. Mazzeu J, Otuki T, Da Silva S (2011) The canonical econophysics approach to the flash crash of May 6, 2010. Applied Mathematical Sciences 5: 1373-1389. 10. Matsushita R, Da Silva S (2011) A log-periodic fit for the flash crash of May 6, 2010. Economics Bulletin 31: 1772-1779. 11. Smith RD (2010) Is high-frequency trading inducing changes in market microstructure and dynamics? ArXiv Quantitative Finance Paper 1006.5490. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/60567 |