Algorithms take control of Wall Street

Re:Algorithms take control of Wall Street by Sniffnoy on Monday January 10, 2011 @03:18AM (#2087868)

> "Automated trading systems will follow their coded logic regardless of outcome,"

Of course, so will humans. They won't make the absurd trades referred to, but a system of trading humans can still, say, get stuck in a positive feedback loop. Of course, they aren't pure trading algorithm, so they may notice the problem, but actually putting a stop to it requires coordination and is hard. Mostly the loop just occurs more slowly.

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Re:Algorithms take control of Wall Street by chrisaycock on Monday January 10, 2011 @10:58AM (#2088784)

Yep, which is precisely why economic bubbles happen. Algo traders weren't responsible for housing prices in the last decade.

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