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aliraz
Topic Author
Posts: 1
Joined: October 16th, 2010, 3:33 pm

non-automated arbitrage strategies?

January 6th, 2011, 11:58 am

I am wondering if there are particular arbitrage strategies that are carried out in a non-automated/hybrid fashion, rather than algorithmically with a computer. In general, what criteria necessitate the involvement of some form of human intelligence?
 
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acastaldo
Posts: 1416
Joined: October 11th, 2002, 11:24 pm

non-automated arbitrage strategies?

January 6th, 2011, 2:02 pm

My 0.02 USD: initially they are all done manually but because speed and accuracy are of the essence there is a strong advantage to automation and eventually the human beings are squeezed out of the process.Conversely if substantial human judgement is required, then it is not an arbitrage.
 
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eh
Posts: 494
Joined: March 2nd, 2010, 9:26 am

non-automated arbitrage strategies?

January 6th, 2011, 4:57 pm

Risk arb is done manually.
 
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tagoma
Posts: 18362
Joined: February 21st, 2010, 12:58 pm

non-automated arbitrage strategies?

January 6th, 2011, 8:11 pm

i work in the commodity sector. in the company i work with , "arbitrage strategy" aims to take advantage of unusual price differences or other imbalances.we've got statistical models, and we use fundamental as well as technical analysis. but, trades are for most part humanly-detected -assessed and -executed. another thing is that trading decisions are very often shared-decisions. i have to say that our market environment is not super fast paced. and, the consultancies i know in the commodity sector do not have any giant multi-armed wicked fast ridiculously powerful computer systems. but, some make money.
 
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frattyquant
Posts: 362
Joined: March 4th, 2010, 8:10 am

non-automated arbitrage strategies?

January 15th, 2011, 10:19 pm

QuoteOriginally posted by: ehRisk arb is done manually.what is risk arb?
 
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eh
Posts: 494
Joined: March 2nd, 2010, 9:26 am

non-automated arbitrage strategies?

January 16th, 2011, 2:43 pm

When you buy stocks in order to benefit from a merger or acquisition.
 
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probably
Posts: 175
Joined: May 18th, 2004, 10:46 pm

non-automated arbitrage strategies?

January 20th, 2011, 10:59 am

I heard somebody calling that "Rumourtrage"
 
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tu160
Posts: 363
Joined: October 23rd, 2007, 1:14 pm

non-automated arbitrage strategies?

January 22nd, 2011, 2:54 am

Last edited by tu160 on December 9th, 2011, 11:00 pm, edited 1 time in total.
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