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The Algorithmic Trader creates our ‘prices’ today!

March 11, 2015

Math and algorithms have taken over financial trading and we now experience machine to machine trading with no human input needed. We live in a new financial world where computers and math have become ubiquitous. I applied for a new mortgage loan today and my application and documentation was done totally via the computer. Virtual documentation is now used by almost all lenders. Interest rates are determined by algorithms in realtime. Underwriting is evaluated by using online information to determine the loan amount, appraisal, and credit history. All this can now be done in seconds via the computer (using algorithms). We live in a new world of math and algorithms!

Most day trading is now accomplished using machine to machine execution. Programmed algorithms can execute a buy or a sell transaction. Manipulating the ‘cyber prices’ via algorithms is now done daily. We witness the ‘price’ suppression of silver and gold daily. This can now be done on our electronic markets using machine to machine algorithms. The ‘cyber price’ of silver (for example) can be programmed and bracketed within a range using the concept of ‘naked short selling’. Naked shorts can be executed on our electronic markets (like the Globex) and the ‘price’ of silver can be bracketed within a range. Currently, the price appears to be bracketed between $15 and $17/ounce. This price is now below the cost of production for silver.

Machine to machine trading using programmed Algorithms is now ubiquitous within our realtime markets! Price discovery is now imaginary and Supply/Demand is not relevant!

Yes, manipulating and suppressing the cyber price of silver and gold can continue as long as digital trading of these metals is allowed (where trading does not force any delivery of the real metal). Gold bugs call this type of trading the ‘paper’ market. In reality, however, this is a digital market where programmed algorithms can suppress and manipulate the prices in realtime. Take a look at the following tick chart of silver and notice how the cyber price is bracketed within our electronic markets. Today’s cyber prices have no relation to actual Supply or Demand. Prices are manipulated in realtime trading (mostly by math and algorithms). So what are prices today? Is ‘price discovery’ possible in today’s markets?

The cyber ‘price’ of silver can now be bracketed and controlled using a trading strategy called the ‘naked short’ strategy! Execution of this strategy can be accomplished via an Algorithm! This means ‘price discovery’ is unreal and mostly artificial!

Price discovery is supposed to be a tool to let us know what is happening with Supply and Demand for a commodity. Prices are supposed to reflect real Supply and Demand forces and provide our markets with information based upon actual Supply and Demand. This is not how our markets work today! The strategy of ‘naked shorts’ can falsely deceive the markets into thinking that Supply (say of silver) is increasing when (in reality) this is mere ‘imagination’. A ‘naked short’ strategy does not allow any real physical DELIVERY of the metal. This means that ‘price discovery’ is artificial and imaginary rather than REAL. Yes, our markets are a SHAM today. There is no meaningful ‘price discovery’ in today’s manipulated markets!

Trading of physical gold/silver does not set the ‘price’ today! All ‘cyber prices’ are set within our electronic markets (mostly via machine to machine trading using Algorithms)!

The ‘digital’ (cyber) Dollar is our problem today! This unit is pure ‘imagination’ and this creates ‘imaginary’ cyber prices for our goods/services/commodities! A CRASH is coming and this crash will be silent and within our computer screens!

Our problem is our currency unit! Today, our currency unit (called the ‘dollar’) is a CYBER unit which allows trading within Cyberspace via machine to machine operations (programmed with mathematical algorithms). This type of trading is mostly a trading of ‘imaginary’ products which appear within the computer screen (within cyberspace) but which are not REAL or physical. Our global markets are now all manipulated and rigged by computers, algorithms, and monitored by digital money derived from our Central Banks. The entire system is a sham and an illusion! Who understands? Few! Enjoy! I am:

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