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Originally posted by Stefanof
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Just want to throw in my 2c worth about the bots because I knew personally a programmer who worked in this area. Approx 50%+ or more trades on the exchange are carried out by bots.The institutions who use them , reprogram instructions in them daily, the instructions come off talented Prop Traders from Investment Banks.The investment institutions have been in structural decline since the GFC at least in the UK so bots are saving on suits. Their biggest advantage is being first in when a break out occurs , they can read the announcements in a nano second picking up key words like eg"Stefanac finally signs dealwith Intel" looking for words like lucrative etc and execute a series of purchasing orders or just wipe out lines quickly again in a nano second propelling the price before everybody else jumps on . The advantage for the retail investor/trader is they also can drag the price down taking advantage of weak hands during low volume allowing an undervalued purchase. Occasionally as the bots don't operate with emotion they can also crash the Sp to a silly low level by taking things in a incorrect context .
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