Quote:
Originally Posted by philfree
How much of that reaction comes from the algorithms? I'm no expert but at this point I think the algorithms start the big selloffs. They'll pick up a headline and boom!
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That's not new.
Even in the old world of brokers, you could put on stops, and a little price movement triggers your stops, then the next guys and the next guys, and a small movement gets exacerbated. Old futures traders still talk about "running stops".
I think "trading algorithms" that move any volume have gotten more refined.
But I could be wrong there.