Robo Trading v Human Trading

QUESTION: So is there any difference between a Robot and a person trading if they just follow the same system on a single market?

ANSWER: Any system that is created which claims to be some robo-trading system is vulnerable to a contagion that impacts a given market from external sources. We are entering a highly correlated global capital flow era which events external to a domestic market can overwhelm a domestic economy and any market.

The only difference between a robo-trading system and a human is that the human can get all emotion and panic. The computer would not do that, but it would be vulnerable to external forces and would not be able to make a judgment call.

The only possible way to overcome this is a complete global model which is monitoring everything and will pick up the external contagions. You can visually see this using the Global Market Watch. You can glance at the trends in all world stock markets for example on one page.

Latest Posts

Market Talk – October 9, 2024

ASIA: The major Asian stock markets had a mixed day today: • NIKKEI 225 increased 340.42 points or 0.87% to 39,277.96 • Shanghai decreased 230.92 points or -6.62% to 3,258.86 [...]
Read more

North Korea & War By 2025

North Korea has threatened to use nuclear weapons if the US threatens its sovereignty. South Korea does not possess nuclear weapons but is protected by the United States, with thousands [...]
Read more