The Dow Roomba

A third of all U.S. stock trades in 2006 were driven by automatic programs. By 2010, that figure will reach 50 percent.

Name it. There are automated trading systems for timing the buying and selling of stock. There are automated trading systems in the futures markets; automated trading systems for crude oil, jet fuel. heating oil, S&P 500, U.S. Treasury Bonds, Dollar, Eurodollar, Gold, Silver, Japanese Yen, Deutschemark, Swiss Franc, British Pound, lumber, animals, animal feed, wheat, corn, ethanol, and soon carbon dioxide.

A computer science professor at Columbia University imagines building an ‘electronic Warren Buffett’ that would be able to answer just about any kind of investing question.

“We want to be able to ask a computer, ‘Tell me about the merger of corporation A and corporation B,’ or ‘Tell me about the impact on the markets of sending more troops to Iraq.'”

Robots in the form of massive “artificial intelligence” routines are replacing human traders. There are many detractors and cynics, and a landscape of broken hearts and bankruptcies over the last years, but researchers have made progress. [story]

Tom Wright, whom I know to be a very good fellow, started his computing career representing IBM during the Apollo launches. He’s built a quantitative analysis firm involved in implementing innovative computer driven, “non-linear, dynamic, adaptive trade timing models using emerging and proven predictive technologies” for world financial markets.

Applied Market Analytics, Inc.
Tom is the chief architect of an advanced exploratory quantitative analysis platform and meta-language for developing computer based trading systems.