Not (entirely) true. Robots are not strictly superior to humans in this case because the emergent properties of the system change due to the speed of robot acti

Not (entirely) true. Robots are not strictly superior to humans in this case because the emergent properties of the system change due to the speed of robot action. As more robots crowd into the very fast strategy space, there tends to be more collision of strategies and thus more extreme price movements as many robots all try to buy/sell the same thing at the same time. If they all pile onto one side of the market, liquidity disappears and price movements become dramatic. In the very fast strategy space, there is less capability for complex strategies requiring long memories. If you want to save some nanoseconds to win at this winner-take-all market, you need to reduce your memory and processing time. http://arxiv.org/PS_cache/arxiv/pdf/1006/1006.5490v1.pdf http://arxiv.org/PS_cache/arxiv/pdf/1006/1006.5490v1.pdf This isn't saying that humans would never display herd behavior, but that they do so less often.