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From: The Omega Man <editorial@xxxxxxxxxxxxx>
:First, the input data is imprecise. Prices are set by a bunch of screaming
:banshees in a "pit".
All the more reasons to get rid of the pits for a Nasdaq level II SOES
execution system.
Do we need to go out to the nth decimal place to
:decide what the price is? Or is a good approximation (which is all that
the
:price spotters can give us anyway) good enough? I say that it makes no
:sense to run calculations out to the nth decimal place when the input data
:is +/- 0.1 points.
Tell that to a trading institution on Wall Street and they'll laugh in your
face. And you call yourself a "financier".
:
:Second, extra precision is not needed for trading. What's needed for
:trading is not more precision, but less. We need "fuzzy" approaches, not
:precise ones. Carrying calculations out to the nth decimal place in a
fuzzy
:environment is ridiculous.
You've never worked for a trading house, have you? When you're trading
other people's money in the billions, try to take that arguement to pension
funds, insurance companies, etc. The trading houses have computers that
received info in hundreth's of a second, makes its calculations and execute
their trades in microseconds. Try that arguement above at DE Shaw and
they'll call security and have you house in a mental ward by the end of the
day.
Tradestation just happens to be a cheap imitation of what's available at
these places. You get what you pay for. But then, TS just happens to be the
best retail product out there. Which tells you much about the sad state
their competition is in.
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