Quote:
Originally Posted by Royaloil
What is insane is 'Algo's" trade more than humans do. This is why new stories can start huge selloffs in the stock market. My grandson rants about this stuff all day long.
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Algos are nothing more than tested decision making with code to remove the human emotions of fear and greed. .
as far as huge selloffs, that is result of options gamma, and that happens on both the upside and the downside. and algos are NOT fail proof, and also contain biases from the human testing.
Some of them have very high ROIs when used with fundamental data because a human can't monitor as many stawks as an algorithm can. .
tell your grandson to start learning python and algos as he won't be able to beat them without an edge. .