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Rise of the machines


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I read today that algo trading now accounts for almost 70% of stock traded volume. The more I hear about algo strategies, the more I think trading as we know it is obsolete. With so much trading running on cold mathematical formulas, what place is there for a human trader basing their trade decisions on the analysis of fear and greed using traditional TA? In the constant game of one-upmanship, one algo strategy is to spit out noise to slow the other algos down. As they try to analyse the false data, the algo that generated the noise is programmed to ignore it so it has the edge. This is what real trading has come to. With so few real traders actually trading, it seems to me the edge these days is in reverse engineering algo strategies and exploiting their predictability for a short while until it’s shelved. Q. can scalping using the order book still work when trying to compete with algos? Edited by keifer
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