AI Hub
28 September 2024
What is the Recent Trend of Algorithmic Trading Criticized For?
Algorithmic trading, often referred to as 'algo-trading', uses computer algorithms to execute trades based on predefined criteria. This form of trading has revolutionized markets through speed and efficiency, processing orders far quicker than any human could. However, along with its advancements, various criticisms have surfaced, spotlighting recent trends in the industry. Understanding these can help traders navigate the pros and cons of the current trading environment comprehensively. Below, we delve deep into the historical context, recent critiques, and responses to algorithmic trading trends. Historical Context of Algorithmic Trading Evolution of Algorithmic Trading The journey of algorithmic trading can be traced back to the 1970s when the advent of electronic trading systems laid the groundwork. By the 1990s and 2000s, algorithms started gaining prominence as technological advancements made complex strategies viable....
