Saturday, September 27, 2014

AUTOMATE THIS: How algorithms came to rule the world

High-frequency trading

High-frequency trading (HFT) is a primary form of algorithmic trading in finance.[1] Specifically, it is the use of sophisticated technological tools and computer algorithms to rapidly trade securities.[2][3][4] HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a secon (From Wikipedia) 


Black–Scholes equation

As above, the Black–Scholes equation is a partial differential equation, which describes the price of the option over time. The equation is:





The key financial insight behind the equation is that one can perfectly hedge the option by buying and selling the underlying asset in just the right way and consequently "eliminate risk". This hedge, in turn, implies that there is only one right price for the option, as returned by the Black–Scholes formula .

Gaussian Copula (probability theory)

euler's formula : Graph Planarity
http://www.personal.kent.edu/~rmuhamma/GraphTheory/MyGraphTheory/planarity.htm

Polyphonic's algorithm:
advanced spectral deconvolution, by using Fourier transform to isolate the melody, rhythm, beat, and so on.

Lisp (programming language)


Beatles
The first chords
The Beatles - "A Hard Day's Night" 
https://www.youtube.com/watch?v=zSm0M-BbVdY

Game theoryhttp://episte.math.ntu.edu.tw/articles/mm/mm_01_3_05/

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