The purpose of this is to encourage more traders to provide liquidity in the market, thereby improving the trading activities and trading efficiency of the market.
It is equivalent to operating this type of securities. If you don’t make a transaction once, the exchange will give you a sum of money, which is a bit similar to the common traffic sharing method in streaming media in later generations. With so many transactions, the difference is quite considerable.
For example, the prey algorithm, which targets liquidity providers in the market and uses their large orders as prey orders to snipe.
Often large orders will cause short-term fluctuations in market prices, which provide profit opportunities for prey algorithms.
The algorithmic order price of a stock often compares and chases each other at an extremely fast speed, so that the stock price shows a phased trend of changing from high to low and from low to high.
In actual transactions, small transactions of a limited number of 100 or 500 shares often push the stock price up or lower it a few points to a few tens of points.
The prey algorithm detects large orders by monitoring data sources such as market depth, order book and transaction traffic. These data sources can provide real-time market intelligence to help algorithms identify potential prey.
Once a large-value order is detected, the prey algorithm will trade with it at a more favorable price. To put it bluntly, it is a low-latency trading system and a high-speed trading connection to implement "order grabbing" to enable large-value orders to be used in orders Before causing market fluctuations, you can trade in time, and then use this artificial barrier to induce institutional investors to raise the buying price or lower the selling price, thereby locking in trading profits.
In addition, there is an automatic market maker strategy, which is to lure investors to change their trading strategies through high-frequency order-taking and order withdrawal strategies, thereby capturing a large amount of potential and hidden order information.
As well as lightning trading and dark pool trading, it is a means to use the short-term information difference between internal and external systems to obtain profits.
This is the gray area of quantitative trading, the securities market.
The reason why it is said to be gray is that although its means are legal, they violate the fairness of transactions in terms of design concepts. They use technical means to gain "early know, early decision-making, early operation" Information priority and used for profit.
In addition, in terms of technology, this method has inflated a large number of transactions and interfered with the "authenticity" of the market, especially the automatic market maker strategy, which is suspected of false order manipulating the stock market.
The remaining lightning transactions and dark pool transactions even snatch food from the privileged class, infringing on their rights.
The last two transactions were directly crossed out of the system by Zhou Zhi: "If we don't do these two transactions, we will be banned sooner or later, so we don't have to make great efforts to develop them."
"No, even if we are banned in the future, we can still make a fortune." Li Laosan expressed dissatisfaction.
"Hehehe..." Zhou Zhi said seriously: "We don't have to make such a move for the big guys to hold grudges. Just the previous moves are enough for us to eat. Xiaomeng, this system needs to be transplanted to Xiaozhi. , How difficult do you think it is? "
"This is simple, mainly because their model is too weak." Mai Xiaomiao has already read the code there: "San Ge, this is specially asked them to develop it with JAVA. ? It's just for the convenience of transplantation? "
"Xiaomiao is so smart." Li Laosan was quite proud: "And they also said that JAVA is really easy to use and deploy." "
"We are the biggest The advantages lie in the low-latency trading system and the high-speed trading connection. "Mai Xiaomiao said: "So to maximize the advantages, we should focus on high-frequency trading."
"I think the third brother has found a good project for us." When he said this, Mai Xiaomiao turned to Zhou Zhi and said, "The structural system of the securities market is very consistent with the neuronal model, and it is also formed through many tiny linear features. A nonlinear system, isn’t it? ”
”Huh?” After pointing it out to Mai Xiaomiao, Zhou Zhi realized that it was really similar. The neuron-like computing power system itself is a system composed of a large number of computing power units connected by high-speed networks. The system uses the algorithm to use the calculation results output from the previous level as the input of the next level, and then goes through layers of "ripples" Calculate and finally calculate the result of high-accurate probability.
This behavior is also applied to the securities market. Every bull market or bear market reflects trading behavior like an avalanche caused by a small snowflake, no matter how time it is Evolution or scale evolution, both are very similar.
"Why didn't we think of this application direction before?"
Mai Xiaomiao didn't have such an idea: "Fortunately, the third brother came a little late, otherwise he would not have the computing resources for Uncle Navy." Zhou Zhi was immediately ashamed. He felt a little sorry for him just now. He has the power of computing, but his ideological awareness is not even as good as the "foreigner". "Don't worry about this." Li Laosan said: "If the system can be successfully transplanted and it is effective, we will expand it!"
"San brother, are you so optimistic about this system? "Zhou Zhi looked at Li Laosan again with admiration. He was sure that this system could bring great benefits because his later experience told him the power of quantitative trading in the securities market, but Li Laosan's judgment was all based on his own experience. And wisdom, and this kid is even an amateur in information technology, which is amazing.
"Have you studied the history of the Rothschild family's success?" Li Laosan asked Zhou Zhi.
"No." Zhou Zhi was very honest: "They were not in the Twenty-Four Histories."
"Hahahaha..." Li Laosan amused Zhou Zhi's cold joke: "During the Battle of Waterloo," Rothschild sent a large number of spies to the front of the battlefield to inquire about the news. He learned about the victory of the war one day earlier than others, and then sold a large number of people in the stock market and bond markets. "
"Because the British stock price had been The rise, the sudden order selling immediately triggered a chain of panic, and people began to follow Rothschild to sell large numbers of orders. "
No mistakes, one song, one content, one in one 6, one 9, one book, one Let’s take a look!
"Rothschild began to absorb stocks and bonds when people were panicking to the worst."
"It was not until the next day that the news of victory came back. Rothschild had already collected huge amounts of bonds and stocks."
" With this hand, he made his family's assets turn over. Twenty times! "Li Laosan sighed and said, "Brother, why do you say that? Time is life! Information jet lag, that is rolling money!"
"Do it!" Zhou Zhi nodded fiercely: "We will do it when we finish this dumpling!"
The method of making shepherd's purse dumplings is not complicated. It is to pick the fresh shepherd's purse, wash it, blanch it in boiling water, pick it out and squeeze it dry, chop it for later use.
Grind the meat filling with meat with meat grinder, stir with onion and ginger, add soy sauce, pepper, chicken essence, salt, sesame oil, and five-spice powder and stir evenly, pour in the shepherd's purse and mix well, then you can make dumplings Now.
There is another type, scrambled eggs with shepherd's purse and make dumplings, and then mix them with chopped green onion, white pepper powder, soy sauce, balsamic vinegar, sugar, chili oil, pepper oil, sesame oil, chicken essence, and chicken mushroom oil. Sweet seasoning, dipped in light eggs, shepherd's purse stuffing, and eaten with dumplings.
Mai Xiaomiao prefers another way to eat it outside the dumplings, which is similar to Zhongshui Dumplings, which are popular among people in Shudu.
Zhou Zhi called it "the way to eat a child", but he didn't dare to say it out. (This chapter ends)