[masraum]

Originally Posted by sammyg2

I tried to predict outcomes in the market based on data, real results, and rational thinking.

ROFLMAO!

If you get tired of your day job, maybe you can be the next Eddie Murphy.

https://www.bbc.com/news/explainers-51265169

Now 42, Navinder Sarao is a self-taught stock market trader who helped cause panic in US markets in 2010 from a bedroom in his parents' home in Hounslow, West London.

He was arrested in 2015 for his part in the "flash crash"- in which financial markets briefly plummeted in value. In this case it lasted less than an hour, wiping almost $1tn off shares before markets recovered.

On this index, every time an order was placed to buy or sell, "high frequency traders" - many of them not human but computers running algorithms - would try to make their own trades milliseconds before those orders could be executed. That way, they could be the first to make money from market changes.

Sarao realised that the high frequency traders all used similar software. That made the market twitchy - like a flock of sheep, all moving in the same direction.

His software took advantage of this by placing thousands of orders before quickly cancelling or changing them, once he had created artificial demand for other traders to buy or sell that asset.

This practice - known as "spoofing" - allowed him to make genuine buy or sell orders at a profit as the price swiftly rose or fell.

By feinting one way, he could make the market move in one direction, only for the "Hound" to disappear, nip around the back of the pack and pick up a quick profit, leaving the high frequency traders with nothing.