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what the fryday flashcrash on GBPUSD tell us about the market?

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tele2112
408
tele2112 2016.10.08 21:10 

Its clear that it was caused by an algorithm error, but the question  is why, because it sugest that just 1 operator can move the entire market. If thats 

the case forex market its more like a cassino, with someone or a small group controlling all the moves, no fundamentals, either technical analisis cant beat this, if thats the case. 

Anyway that flashcrash spoiled the future movement of USDGPB, it obviousilly will fall next days. 

Jose Francisco Casado Fernandez
2729
Jose Francisco Casado Fernandez 2016.10.09 01:18  
Money is money. I don't believe in errors. Regards.
Alain Verleyen
Moderator
31090
Alain Verleyen 2016.10.10 11:19  
tele2112:

Its clear that it was caused by an algorithm error, but the question  is why, because it sugest that just 1 operator can move the entire market. If thats 

the case forex market its more like a cassino, with someone or a small group controlling all the moves, no fundamentals, either technical analisis cant beat this, if thats the case. 

Anyway that flashcrash spoiled the future movement of USDGPB, it obviousilly will fall next days. 

Which "algorithm error" ?

It's a panic movement when some news were published. It's how market are working, it can happens at any time on any market.

The British pound just went over a cliff
The British pound just went over a cliff
  • 2016.10.07
  • Simon Thomsen, David Scutt
  • www.businessinsider.com.au
The pound has been hammered in trade today after French president François Hollande called for a hard Brexit for the UK. Hollande didn’t hold back in front of EU president Jean-Claude Juncker, according to a story that ran in the Financial Times, when he said “we must go all the way through the UK’s willingness to leave the EU. We have to have...
Marco vd Heijden
Moderator
4731
Marco vd Heijden 2016.10.10 11:37  
Greed and Fear.
Christian Deforth
292
Christian Deforth 2016.10.10 12:36  

The computerized market & the high algorithm trading seems high vulnerable for abrupt price excesses. These not predictable flash events should be consider into future investments

and should have an impact of your risk tolerance.

e.g.

https://www.theguardian.com/business/2016/oct/07/confusion-as-pound-falls-10-in-insane-asian-trading-and-no-one-knows-why

Bank of England investigating dramatic overnight fall in pound

Potential causes of sterling flash crash that compounded earlier losses include ‘fat finger’ error and computer-generated trade


Christian

Bank of England investigating dramatic overnight fall in pound
Bank of England investigating dramatic overnight fall in pound
  • 2016.10.07
  • //www.theguardian.com/profile/jilltreanor">Jill Treanor
  • www.theguardian.com
The Bank of England and other central banks are scrutinising the dramatic dive in the pound on Friday to establish what drove sterling to new 31-year low in a trading incident that has had repercussions across global markets. The Bank, which had been on alert for the impact of computer trading on markets, said: “We are looking at the causes of...
Alain Verleyen
Moderator
31090
Alain Verleyen 2016.10.10 16:38  
Christian Deforth:

The computerized market & the high algorithm trading seems high vulnerable for abrupt price excesses. These not predictable flash events should be consider into future investments

and should have an impact of your risk tolerance.

e.g.

https://www.theguardian.com/business/2016/oct/07/confusion-as-pound-falls-10-in-insane-asian-trading-and-no-one-knows-why

Bank of England investigating dramatic overnight fall in pound

Potential causes of sterling flash crash that compounded earlier losses include ‘fat finger’ error and computer-generated trade


Christian

Interesting. But the only conclusion I can draw is : "nothing is clear".
tele2112
408
tele2112 2016.10.10 18:31  
I`ll make a lot of money with my new short entry on this, because now anyone can see it will go bellow 1.20
Christian Deforth
292
Christian Deforth 2016.10.12 02:37  
Alain Verleyen:
Interesting. But the only conclusion I can draw is : "nothing is clear".

Oh yes Alain, my sentiments exactly, and I think these excesses will get more worse in the future.

That means for me put out a part of your profits out of the accounts regularly from time to time and try to trade exclusively with profit money not with your savings.

Best regards

Christian

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