The robots then seized back control of events! Automatic stock-trading systems helped push down the price of UAL amid panicked selling triggered by the Bloomberg report. The stock plummeted to $3 from $12.50 before some good robots finally halted trading.
Well UAL stock crash, tribune VS Google news is nothing new but what interested me more was that auto trading bots gone selling frenzy and stock crashed for UAL.
Wow.. so where we invest (especially in managed funds/superannuation) are controlled by robots?
In fact, this is not the first time I’ve read similar story, last yr when we first started to hear “sub-prime” mortgage market crash, some article did mention auto trading bots were at selling frenzy.
Again, bots LOGIC are controlled by its human creators, but frankly I DONT THINK written rules(pre-set logics) can drive the trading and as reliable as experienced traders.
However, I really doubt this will be the last mistake the BOTs will make as human costs usually out weights bots mistakes..
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