Sell Reuters Shares, Based On This Story

from the automatic-for-the-people dept

Automated, computer-based stock trading has been on the rise for some time. Yet, ultimately, most of the difficult decisions and analysis must be made by humans. For example, trading based on a major event (a merger rumor, or a quarterly report) can’t be initiated by a computer. Reuters is hoping to change that with a new service that will put machine-readable tags on stories, so that computers can do trades based on events. The success of this will come down to two things. First, Reuters has to do a good job meaningfully portraying the gist of the story in a few tags. And second, humans will still have to write the algorithms that interpret the information and act on it. Overall, it’s been slow going in terms of using computers to gather and collect financial data. XBRL, a language for letting computers interpret SEC reports is always being touted as the next big thing; it’s now in its 14th year of being the next big thing. So while we may be able to automate some tasks, there’s little prospect for removing humans from finance entirely. Now, just imagine the feedback loop we might see if computers started reacting to financial articles written by other computers.

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Comments on “Sell Reuters Shares, Based On This Story”

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Anonymous Coward says:


This actually scares me. I’m no finance person, but doesn’t this lead to the possibility of these machines reacting to an event which in turn causes an event that machines react to and so on into a downward feedback loop that crashes the market? I know there are protections against such things, but I would be hesitant to allow a machine free reign on the market.

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