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> "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, b
by Sniffnoy 16y ago
> "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.
- chrisaycock 16y agoYep, which is precisely why economic bubbles happen. Algo traders weren't responsible for housing prices in the last decade.