Raulder? Blancfan thought he had heard it wrong, when he attended this banquet, Gao Sheng was fine, the banquet was not over yet, why was Gao Sheng suddenly over? He looked at the time and saw that it wasn't April Fool's Day! So he frowned and asked again, "What?" What did you say? ”

"Chairman, it's over, Gao Sheng is over! The Board of Directors is asking you to come back immediately for an emergency meeting. "Raulder? Bellakfan's secretary spoke again.

Raulder? After listening to his secretary's words, Belrankfan immediately blurted out: "Impossible! ”

"It's true, if you don't believe it, you can look at today's news, and now the global financial media are reporting on it." Raulder? Belankvan's secretary said again.

"Chairman, you'd better come back quickly! Those board members are here and waiting for you. "Raulder? Belrankfan's secretary continued.

Raulder? After receiving repeated confirmation from his secretary, Blancfin finally believed the impossible fact, and the phone slipped out of his hand. Belankfan didn't hold back a mouthful of blood and spurted out of his mouth, and then the whole person fainted.

Raulder? The people around Belrankfan were all Rauld? Blancfan was taken aback by this sudden change, and suddenly the focus of everyone in the banquet was on Lauder? None of them knew what was going on.

Wang Tianyu saw Lao Erde? After Frank Kefan's reaction, the corners of his mouth rose slightly, revealing a mysterious and smug smile, he knew that Concubine Ling Fei's action should have been successful.

Raulder? After Belankvan was rushed to the ambulance. The whole banquet also broke up.

Wang Tianyu drove Wang Bonian and the others back to Wang's house, and he himself returned to his castle, but it turned out that they were three people who went to the banquet, and when they came back, they had become four people, and there was one more flower whirling dance.

As soon as Wang Tianyu and the others returned to the castle, Concubine Ling Fei greeted them and looked at Wang Tianyu with a smile on her face, obviously she was in a very good mood at the moment.

"Sister Feifei!" When Hua Xuanwu saw Wu Luoyi, she took the initiative to greet her.

"Good!" Concubine Ling Fei was the style of an eldest sister and said to the flowers.

Wu Luoyi and Meng Lina couldn't help laughing when they saw it, and Wang Tianyu also looked at Concubine Ling Fei helplessly and said, "Concubine Fei, you are not allowed to bully the dancing girl!" ”

"She's covered by you now. How dare I? Concubine Ling Fei said with a pout.

"Alright. Don't pretend to be pathetic. Everything is done? Wang Tianyu asked at Concubine Ling Fei.

"Well, fortunately, I didn't disgrace my life, and I finally completed the task successfully." Concubine Ling Fei said excitedly at Wang Tianyu.

"Oh." Wang Tianyu responded with a smile, and then turned on the TV. I started to look at the news on international finance. Such a big event should be reported in the major financial media.

Really. Wang Tianyu opened a well-known financial media on Wall Street, and news about Gao Sheng immediately appeared.

"This morning, half an hour after the U.S. stock market opened, suddenly there was a big swing in global financial markets. Countless financial speculators and institutions went bankrupt in an instant, among which Gao Sheng, one of the two largest investment banks left in the United States, suffered heavy losses this time, and the preliminary estimate was that Gao Sheng's losses this time were as high as $2 trillion, and many of Gao Sheng's customers suffered heavy losses. A reporter said with the microphone in his hand.

"You can see the Gaosheng Building behind me, and now the whole Gaosheng Building has been corroborated, and customers around the world are asking for divestment. At present, Gaosheng is in trouble and is facing the risk of bankruptcy. The reporter pointed to the Gao Sheng Building behind him and continued.

"Because the global financial market fluctuated so fast this time, it happened almost in a few seconds, and no one reacted, and by the time everyone did, it was already too late." The reporter then explained.

"At present, financial regulators in the United States and around the world have intervened to investigate the incident, but it is estimated that the incident is caused by programmatic trading and high-frequency trading." The reporter then spoke.

"As human technology becomes more and more advanced, Wall Street computers are becoming more and more human-like, and they are becoming more and more prone to make mistakes like humans." The reporter continued.

Wang Tianyu looked at the reports in the news media, and a smug smile appeared on his face, because his goal had finally been achieved.

With the increasing development of human technology, and the amount of information that the financial market has to process every day, due to people's laziness and starting to look for shortcuts, they have begun to use computers to make money for them. That's why there's programmatic trading, or automated trading. Programmatic trading is that the designer calculates the logic and parameters of the trading strategy or trading model in the computer program, and systematizes the trading strategy, and then lets the computer replace manual trading.

Programmatic trading can appear on Wall Street and in all financial markets, and naturally has advantages that humans can't have.

First of all, the use of programmatic trading can overcome the weakness of human nature in the trading process, which is the biggest advantage of programmatic trading, people are human weaknesses, people's emotional factors, greed, fear, indecisiveness, gambling and other factors will make a person suddenly change the original plan at the moment of trading, and this behavior is constantly repeated. Just as the German philosopher and psychologist Schopenhauer said, "It is inevitable that a person will make the same mistakes at the same time and under the same environmental conditions, and this is the root of human inferiority." For retail investors, it is not so much about trading with the market as it is about constantly fighting against their own demons. Programmatic trading is that everything has been planned, and the computer is an out-and-out executor, and it should be said that it is almost 100% integrated with knowledge and action, which also frees traders from the hard work of the market.

The second is that the use of programmatic trading can break through the physiological limits of people, people's reaction speed is limited, trading from the brain to think of manual needs a period of time to complete, and computer program trading is obviously much faster than manual, especially when traders in order to diversify the risk and carry out a multi-variety combination, people's ability is limited, if you choose a little more varieties can reduce the risk of trading, if we want to hold more than four commodity varieties at the same time, when the market is fierce multiple varieties at the same time signal trading, That person's actions can't be taken into account, but the computer can easily do it.

So a lot of Wall Street financial institutions are starting to adopt this kind of programmatic trading. High-frequency trading is also a type of programmatic trading.

High-frequency trading refers to computerized trading that seeks to profit from extremely brief market changes that people cannot take advantage of, such as a small change in the difference between the bid and ask prices of a security, or a small spread in the price of a stock between different exchanges.

High-frequency trading is a form of automated trading and is known for its speed. Using sophisticated computer and IT systems, high-frequency traders execute trades in milliseconds and hold positions for short periods of the day, usually without new positions at the end of the day. There are many strategies for high-frequency trading, but the main one is to grab profits by trading financial instruments between different trading platforms at ultra-high speeds. High-frequency trading strategies typically span equities, fixed income, derivatives, and foreign exchange markets, with characteristics such as high turnover and market neutrality.

High-frequency trading, which is traded so fast that some trading institutions have placed their "server groups" very close to the exchange's computers in order to shorten the distance that trading orders travel at the speed of light via fiber optic cables.

In addition to the popularity of high-speed computers that have made high-frequency trading possible, several regulatory changes have also contributed to the evolution of high-frequency trading.

As for the impact of "high-frequency trading" on the market, there has long been a fierce discussion among investment banking institutions. According to a report by the Federal Reserve Bank of Chicago, about 70% of the overall volume of the U.S. stock market is done through "high-frequency trading", compared to only 2% of institutions that do "high-frequency trading".

The Federal Reserve Bank of Chicago believes that in this context, although "high-frequency trading" is also good for the market and can increase the liquidity of the stock market, if the procedure is wrong or human negligence can have a catastrophic impact on the market movement. For example, most of the problems in "high-frequency trading" are due to the wrong instructions given to the machine by investors. Although the impact of this error has been limited so far, it has caused wild market volatility on several occasions.

High-frequency trading in the United States, high-frequency trading companies represent 2% of today's approximately 20,000 operating companies, but trading volume accounts for about 73% of the equity. High-frequency trading is characterized by quantitative trading, i.e. a short holding period of a portfolio. There are four main categories of high-frequency trading strategies: market decisions based on order flow, market decisions based on data information ticks, event arbitrage and statistical arbitrage.

All portfolio allocation decisions are made by computerized quantitative models. The success of high-frequency trading strategies is largely driven by their ability to process large amounts of information while some ordinary people cannot trade.

Market making is a high-frequency trading strategy that involves a limit sell (or offer) above the prevailing market price or a buy limit order (or a bid below the current price) to benefit from the buy and sell spread. The automated trading desk, which was purchased by Citigroup in July 2007, has been an active market manufacturer.

"High-frequency trading" is one of the words that have appeared frequently in the American financial media recently: this kind of stock trading dominated by powerful computer systems and complex calculations can automatically complete a large number of buy, sell and cancel orders within milliseconds; And in order to gain this thousandth of a second advantage, securities companies even place servers near the exchange or in the same building.

Therefore, some industry insiders believe that this increasingly mysterious money game puts ordinary investors without technical support in a passive state, and that the computer system of high-frequency trading will have a huge impact on the stock market in a short period of time if it fails. (To be continued......)