Tuesday, January 15, 2008

Stock market surveillance systems

Stock exchange plays a dominant role in any country’s economy where companies sell their stocks to raise their capital.It sometimes use as indicator to predict the fluctuations of whole country’s economy. Because of this people pay more attention to invest their money on stock market. Normally people invest their money on stock market irrespective of their economy level, age, educational level etc...

So there is a possibility of investors get in to trouble and lost all their money due to unawareness about the fluctuations of market. People normally tend to react on sudden movements on stock market expecting huge profit. But these movements sometimes created by stock manipulators to cheat people and earn money. There are several well known cases on stock manipulation which some times resulted in change of ownership of companies. Manipulation of stock market are done by the people who have lot of stocks(money) and more power. Eg – Businessman, stock brokers.

Some techniques that are used by stock manipulators are not illegal but execute with the intention of cheat others. Some countries have laws against illegal stock transactions and it is mandatory (recommended) to have stock surveillance systems in such countries. Functionality of stock market surveillance system is to detect such manipulation in real time and report them. Stock surveillance systems are monitor the market for detect well known stock manipulation cases.

Following are some of well known stock manipulation techniques.
  • Insider trading

  • Front running

  • Painting the tape

  • Wash sales

  • Pump and dump

  • Poop and scoop

  • Making the close(portfolio pumping)
  • Monday, January 14, 2008

    The most intersting subject in my UNI life

    I really enjoyed by arguing on subject matters with my batch mates.Recently I had such a discussion, which I guessed most interesting discussion I had in my UNI life.That is about Evolutionary Computing(EC) and its applications.

    EC is inspired by Darwinian principle of "survival of the fittest" which we observed in daily life.Under that we have learn about
  • Genetic Algorithms(GA)

  • Genetic Programming(GP)

  • Evolutionary stratergies(ES)

  • Evolutionary Programming(EP)

  • Learning Classifier Systems(LCS)


  • First four techniques are used to optimization, constraint satisfaction problems while the most interesting part that is LCS use for automatic rule generation.It can be use as alternative for Expert Systems(ES).

    Under LCS we have solved the problems like
  • Robot navigation to have maximum reward

  • Reduce numbers in to one number

  • Predicting character sequence which are organized in circular way


  • What makes these techniques more interesting is that all these techniques has concept and no rigid ways to implement them.It is our responsibility to understand them and apply them accordingly.

    I invite all computer science undergraduates to discuss on these technique and like to say that if you have a chance to learn Evolutionary Computing Don't miss it.