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I don't believe algorithms decide the direction of markets, but it's pretty clear that they amplify effects triggered by real-world conditions. HFT trading is j
by w0utert 9y ago
I don't believe algorithms decide the direction of markets, but it's pretty clear that they amplify effects triggered by real-world conditions. HFT trading is just a way to make money, and things like large market swings, high trade volumes etc. provides interesting exploits to do exactly that. You could call it 'intellectual laziness', I would call it Occam's razor.
- fwdpropaganda 9y agoYou realize that these things happened before computers too, right? Saying "algorithms did it" is as much of Occam's as saying "god created the universe": it's certainly an easier explanation than studying high-energy physics.
- OscarCunningham 9y agoIf HFT makes money from the large swings then you would expect HFT to have made the large swings less common. Exploiting an inefficiency removes it.