Tuesday, February 6, 2018

How much of a role did algorithmic high frequency trading (bots) factor in today’s developments?

I know most people are rightly saying this was an overdue correction of the market. However, as mentioned on PBS Newshour tonight, many sell offs are apparently triggered by artificially intelligent processes - namely algorithmic high frequency trading. I learned a bit about it here. Is this system well controlled by human handlers? Could this technology pose systemic risk to the economy due to poorly understood emergent properties of the algorithms involved? Sorry if this question appears painfully naive to experts, just wondering because of what PBS reported. Can’t seem to find any recent discussions about this subject.



Submitted February 05, 2018 at 09:38PM by ElevatedApe http://ift.tt/2nH8TRQ

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