242 trades , page-11

That's all very well SP3, but the trades on the day were clearly the bot buying up, and the range for the day (1.5c) was hardly likely to trigger a lot of stop losses. Italso only happened on one day, and with no volume to write home about.

I have no doubt the scenario nightstalker outlined does happen, but in that event I would expect to see the bot selling down, and creating a daily range that would cause some stops to go, and others to place their sells where the price had been, which as suggested would be snaffled at the end of the day.

In other stocks I have witnessed (including stocks in the ASX 200) this bot selling or buying, and sometimes both at the same time, go on for days on end, and often with a very small trading range.

What I'm saying is, there is clearly more than one reason/use for bot selling/buying, but everybody seems to want to jump to the 'conspiracy theory' when they see it!

To illustrate this point, here is a reply received from the ASX in response to a very recent query regarding bot selling/buying on the CNP board (which is not one of my witnessed stocks).

This from DouglasB on the CNP threads where the bots were trading both ways with 7 and 8 share parcels (in a stock regularly doing >20m/day).

Post #: 2598078
ASX response to my report bot trading on 26th Feb. (See my 'complaint' earlier in this thread).

Dear Douglas,

Thank you for your email.

Having reviewed the course of sales data for CNP for 26 February it appears the trades you are referring to, are the result of DMA (Direct Market Access) or algorithmic trading.

You may be aware that DMA trading allows a client to send orders directly onto a trading platform without human intervention. One form of DMA trading involves a strategy to match the volume weighted average price (VWAP) for a stock over a day. As a means of capturing the VWAP, a single order might be split up into several smaller orders which are submitted periodically (every 3 minutes for example).

This type of DMA trading is normally unremarkable and has no impact on the price or volume of a stock. However, occasionally market observers may see small volume orders being submitted to a trading platform in a less liquid stock which result in small volume trades.

Surveillance monitors DMA trading and expects brokers to have in place appropriate mechanisms to ensure that such trading is not manipulative. DMA trading is an increasingly popular means of trading, particularly when a participant seeks to track VWAP or 'slice and dice' an order for other purposes.
Further details and articles regarding DMA trading can be found by searching under "DMA Trading" on the ASX website.

Please refer to the link below.

http://bureau.panopticsearch.com/search/search.cgi?query=DMA+Trading&collection=asx&form=simple&num_ranks=10

Please be advised that ASX surveillance has been notified of your concerns and will continue to monitor the trading in CNP.

I hope this is of some assistance to you and I appreciate you raising your concerns with the ASX.

-End-