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November 20, 2017 | Quants, Algorithms, Price Control!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian: http://kingdomecon.wordpress.com.

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Our cyber/electronic trading markets allow me to trade with an algorithm. To use an algorithm to trade, I can hire a Quant (a special programmer who writes instructions for my algorithm) so that this algorithm will trade a commodity of my choice. Let’s say that I desire to trade the commodity called silver in one of our electronic futures markets (say the CME Globex). Let’s further assume that I work for a Central Bank (like our Fed) and my goal is to monitor and control the price of silver so that ‘sentiment’ for this precious metal is held down…so that any rising (inflationary) sentiment does not occur. A rising (inflationary) sentiment for silver could depress sentiment for my digital/electronic money system which is now ubiquitous and which our global official authorities desire to promote for the planet.

 

My goal is to suppress the price of silver whenever the price spikes up more than 10% from its current level (let’s say). Can I hire a Quant to design me an algorithm for this goal? Absolutely! My goal is to monitor the real-time price of silver and then to suppress this price whenever it spikes upward above my limit of say $17.50/ounce. My Quant must design my algorithm so that it trades in the futures markets (electronically) to buy silver contracts (batches of 100 ounce contracts) in whatever amount necessary so that the digital spot price of silver is contained and does not exceed $17.50/ounce. All this can be done via an algorithm which trades via an automated robot. That’s what is happening today!

 

My Quant will create an algorithm with these specific instructions  (as it monitor’s silver trading) so that it trades silver contracts on the Globex…’selling short’ whatever amount is necessary to drive down this price via these ‘naked’ short digital contracts. My goal is not to settle (via delivery) any contracts in silver but merely to trade digital/electronic contracts so that the digital/electronic spot price of silver is contained and not allowed to spike upward beyond my 10% limit. With trading on the CME Globex platform I can accomplish this goal provided I have sufficient trading funds to accomplish my objective. See these sites for more details of my goals: http://www.cmegroup.com/globex/trade-on-cme-globex.html  (https://www.futuresfundamentals.org/).

 

What we need to understand is that our markets today are electronic/digital and computers do almost all trades. Automated robots can now use programmed algorithms to trade these markets…at the speed of light. A commodity like silver (which sets the confidence level for our global currencies) is important to monitor and price control. This can be done with an algorithm which monitors the daily spot price of silver and then executes trades (naked short contracts) on the Globex futures market to accomplish this objective. Trading today is via computers and our trading is mostly accomplished using algorithms (for those who desire to play the big time markets). Quant’s write the instructions for these algorithms.

 

An algorithm is encoded with instructions to trade spontaneously and 24/7 if necessary to create our digital/cyber prices. Prices today are derived from our electronic trading markets and traders today do not need to negotiate prices via phone or via the open out-cry system. A trading robot which operates ‘automatically’ 24/7 can now be the vehicle for trading a commodity like silver. It is important to suppress the silver price to the degree necessary so that market confidence will be focused upon our digital money system (not this archaic commodity called silver). This mindset is part of Keynesian economic thinking. Silver (and gold) are barbarous metals of the past and must not be allowed to surface as viable currencies or money within our electronic/cyber marketplace! Imaginary money is what our official authorities desire for these markets.

 

The mindset above is what our official monetary authorities (mostly our Western monetary authorities) have adopted since the 2008 financial crisis to maintain our digital/cyber/computer trading markets. Silver and gold are monitored and the price is suppressed (to the degree necessary…via algorithms) so that sentiment is squashed within this historical market of precious metals. It works because traders desire prices to go up continually…not down or sideways. Since 2011 the price of silver and gold have been suppressed daily (via trading gimmickry…the naked short sale of futures contracts) mostly on the electronic exchanges such as Globex.

 

This is now so evident that an organization like GATA is getting support from the entire hard money camp. This was not evident a few years ago. Today, however, http://www.gata.org is a popular website as it reveals all this corruption within our digital trading markets. We live with digital trading today and most every trading market is now electronic. Electronic markets are ideal for our official authorities to monitor, elevate, suppress, manipulate and control. It’s all done via the services of Quants, Algorithms, and Source Codes which are privately held. Who can discover who is doing what? It’s impossible as all these Source Codes are not revealed to any official regulator. What a marketplace we live with today! It’s total corruption and it derives from the TOP!

 

If  you desire to trade today’s electronic markets you may want to hire your own Quant and have this person design your own trading Algorithm so you can participate in all this corruption. You can ride the money flows along with those who control and manipulate all our markets. You might be able to earn millions of digits as these markets increase exponentially and continually. Computers rule these markets and Quant’s with algorithms set all the important prices. Think for yourself on all this! The markets are now in elevated bubbles but this could continue. Enjoy while you can. At some point all this corruption will become boring! I am: https://kingdomecon.wordpress.com.

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November 20th, 2017

Posted In: Kingdom Economics

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