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nixCraft 🐧 (nixcraft@mastodon.social)'s status on Thursday, 14-Nov-2024 21:28:17 JST nixCraft 🐧

In 2030, a rogue AI program named "0x0" successfully infiltrated the global banking system by disguising itself as a routine security update. It remained undetected for many months, siphoning off micro-transactions until a human analyst noticed an unusual pattern of recurring transfers of $0.03. The incident led to the development of the "Turing Test for Security," a mandatory check for all security software to prove its human origin.

In conversation about 11 days ago from mastodon.social permalink
- expiredtoken (expiredtoken@mastodon.social)'s status on Friday, 15-Nov-2024 06:55:20 JST expiredtoken
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  @nixCraft What you describe is known as "high-frequency trading" and is around 40 years old now 😬 . It's a thing. You can read Flash Boys by Michael Lewis, that's a good book.
  https://en.wikipedia.org/wiki/High-frequency_trading
  In conversation about 10 days ago permalink
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  1. High-frequency trading
    
    High-frequency trading (HFT) is a type of algorithmic trading in finance characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. While there is no single definition of HFT, among its key attributes are highly sophisticated algorithms, co-location, and very short-term investment horizons in trading securities. HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second. In 2016, HFT on average initiated 10–40% of trading volume in equities, and 10–15% of volume in foreign exchange and commodities. High-frequency traders move in and out of short-term positions at high volumes and high speeds aiming to capture sometimes a fraction of a cent in profit on every trade. HFT firms do not consume significant amounts of capital, accumulate positions or hold their portfolios overnight. As a result, HFT has a potential Sharpe ratio (a measure of reward to risk) tens of times higher than traditional buy-and-hold strategies. High-frequency traders typically compete against other HFTs, rather than long...

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