Front running explained | Trading concept to know

[@deeplizard]

Depth chart video: kzbin.info/www/bejne/hXSvi2htbsaHhJY Will Warren article: blog.0xproject.com/front-running-griefing-and-the-perils-of-virtual-settlement-part-1-8554ab283e97 Wiki: en.wikipedia.org/wiki/Front_running Tedx talk (High frequency trading and the new algorithmic ecosystem): kzbin.info/www/bejne/jGWWkmCBrbF5mck SEC complaint: www.sec.gov/news/press-release/2013-2013-93htm

[@jessetownsend4955]

I loved the campfire spooky narrorator's voice. Thanks for the knowledge.

[@PseudoSniper]

You have a great way of explaining things, thank you for putting these videos together for us to learn!

[@deeplizard]

Appreciate that Brendan. You are welcome!

[@gatheringwithin]

Very nice videos, you've dug up some interesting stories :D

[@deeplizard]

Hey gatheringwithin - First thing's first - nice handle! Appreciate you letting us know! That was an experimental technique. SEC articles are usually really boring. If you've ever seen American Greed the show, that's what I was shooting for. lol. Thanks again!

[@gatheringwithin]

Thanks. No, I haven't seen it. Yours is nice too, there is two of you right? :P Have you used GDAX API, or for any other exchange api? Do you wanna team up and build some cleverbot?

[@deeplizard]

Haha. Do you mean: en.wikipedia.org/wiki/Cleverbot You’ve got it. There are two of us here. :) American Greed is a show that shows scams and their impact documentary style. Not bad, and even educational for people who aren’t privy to the red flags of financial fraud. I do use the GDAX API. It’s interesting that you mentioned it because it's next on my list for video creation. I don’t think I’m down for teaming up at the moment, but what do you bring to the table? What’s your background? Finance? Developer?

[@gatheringwithin]

I thought you might bring api next since you got already crypto and ai part next thing would api-ai-crypto mashup :). My background is physics and computational chemistry but now i am more interested in machine learning&NN and trading. I haven't combined those yet :P and no, i haven't meant Cleverbot i mean a bot that is actually clever, and could do its brainy magic through gdax api :D

[@deeplizard]

haha. :)_My background is physics and computational chemistry_ Very nice & thanks for sharing! I wonder if you ever watch videos by Space Time. Link: kzbin.info/door/7_gcs09iThXybpVgjHZ_7g I really like those. I got my start with finance and economics. Then, moved to math and computer science. Polymath all the way! ;)

[@boonedockjourneyman7979]

Good job on a difficult topic.

[@Zenbeau]

How did they catch him? (the dallas based trader)

[@deeplizard]

I'm not sure. Usually it's through some type of audit or maybe the feds were tipped off by a whistle blower. These schemes can go on for a long time.

[@muess]

Likely their broker picked up someone consistently winning on particular trades and flagged it with the SEC. It would be fairly trivial to find someone front running like this algorithmically.

[@NikLyons]

I also sort of feel like this front running is a threat to decentralized currencies

[@deeplizard]

Hey Nik - Oh yeah definitely. That bit at the end from WW touches on that. A lot of the ICOs that are less legit are essentially front running the whole market. Many of the projects give a large portion of the funds to quote "the team". That kind of thing.

[@brunovarney3351]

This is what they did in Wolf Of Wall Street

[@炒粿条-b1d]

How does one make profit from this?

[@donaldli4755]

TLDR 2:15

[@NikLyons]

Seems like front running is like insider trading.. Manipulation of markets. I feel like its sort of what has tainted the view of traders of stock or crypto.. I would like to see honesty and transparency returned to currency

[@deeplizard]

I agree with you there. You are on point with the insider trading bit. There is much overlap between front running and insider trading. In some cases they are one-in-the-same.

[@deeplizard]

Appreciate your comments. Great thoughts!

[@NikLyons]

deeplizard thank you keep up the good work!