Rise of the Algos
Wild swings in the stock markets this year have been largely due to ‘algo’ trading. Never heard of this method of trading? Algo is short for algorithm. Algo trading means that the buying or selling of a stock on bond is based on an algorithmic program. Most algorithmic programs measure market data real-time and make buy or sell decisions prior to analyzing the meaning of that data. Last week, CNBC reported that 80% of all trading was done by algos while the other 20% was s