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<p>[QUOTE=&quot;InfleXion, post: 1583055, member: 29012&quot;]You said traditional investors. Traditional investors don&#039;t use algos. Even the ones that do are a drop in the ocean compared to hedge fund algos that run trillions of dollars worth as opposed to a single investor portfolio. Algo trading is non-stop, you can even see it in the daily silver chart as it looks like it&#039;s constantly vibrating. Some of these big fish have fiber cables directly across the street from the market that can execute trades literally in nanoseconds, front running every trade order they receive from their clients to buy or sell in advance of the order they know is coming so they can skim a tiny profit. It&#039;s called quote stuffing, and is a big reason why it has been proposed that individual trades are taxed so that this is not so rampant. While fundamental demand does impact the direction of the quote stuffing, it is still only a tiny fraction of the overall dynamics, and anytime a big fish doesn&#039;t like the direction things are going they have the ability to overpower fundamentals with sheer volume. The evidence I have seen algos being turned off is when they cause flash crashes, otherwise they are just &quot;making markets&quot; as Lloyd Blankfein puts it. Computers can and do know global movements, because they take into account news articles in near real time. AI is more advanced that most of us would feel comfortable with. Technology has advanced quite a bit since Enron, and it is also growing exponentially as per Moore&#039;s Law. </p><p><br /></p><p>Some info here - <a href="http://www.zerohedge.com/news/guest-post-austrian-view-high-frequency-trading" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.zerohedge.com/news/guest-post-austrian-view-high-frequency-trading" rel="nofollow">http://www.zerohedge.com/news/guest-post-austrian-view-high-frequency-trading</a>[/QUOTE]</p><p><br /></p>

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