Automated Trading and the Fastest Computer
Everyone knows that computers are getting cheaper and faster all the time. The Intel Core i7 Extreme 965EE has been clocked at 76,000 MIPS (million instructions per second) according to Wikipedia. When the home computer appeared in the form of the Apple II and Commodore 64 in 1982, they were running around 1 MIPS. The Apple II ran at 0.7 MIPS, to be exact.
So, that means between 1982 and 2008 computers went from 0.7 MIPS to 76,000 MIPS. Besides that, the price of computers has plummeted, when evaluated in real terms. In 26 years we have seen an increase of about 500,000 times. This translates to an increase of 66% per year on average.
But computers are actually getting faster more quickly than ever before. They are doubling in computing power every year now. That means that in 3 years we will have a computer ten times as powerful.
What does that mean for Automated Trading?
It means that the results from Automated Trading systems will continue to improve radically. In the past, a major barrier to developing successful Automated Trading systems was a lack of computing power. System designers needed thousands or millions of times the computing power that they had available at the time.
How times change. In just 10 years, we will be able to buy 1,000 times more computing power for our dollar. Automated Trading system developers will have all the computing power that they need or want. They will be able to create systems that not only profitable, but are less risky and more consistent.
That is a major goal of ours. We are creating systems that are designed to perform well not only during development and testing, but also in the real world. Ever-faster computers are a major driver of the Automated Trading revolution. It is great to be here to watch and participate as it unfolds.
Related posts:
- Which is Safer? Automated Trading or Human Trading?
- Why use an Automated Trading System?
- Automated Trading and the Singularity
- Accelerating Technology and Automated Trading
- Automated Trading and Artificial Intelligence
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is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
