bot - no brokerage, page-11

The trading in GBP yesterday was done by a very simplistic bot. As you say trading small parcels every 2 minutes.

The broker was probably running a simple VWAP or TVWAP strategy. Nothing sinister going on here.

Read the ASX discussion paper on BOT trading to try and understand the motivation behind it.

Also grab this book.

http://www.amazon.com/Nerds-Wall-Street-Machines-Markets/dp/0471369462/ref=sr_1_1?ie=UTF8&s=books&qid=1266881762&sr=8-1

BOT trading is here to stay. Get used to it.

I always find it funny when people ONLY complain about BOTS when they are on the wrong side of them.