accumulation???, page-19

For those that wish to know a little more about the infamous "bot", otherwise known as algorithmic trading which is now widely used amoung brokerage firms and institutions, i've attached the following ASX link.

click here for the ASX review of algorithmic trading and market access

Despite what you might learn from this paper, imo as an individual investor I see these machines as nothing more than pre-programmed stock manipulators. If you or I were to conduct our own trades in this same fashion as we witness most of these programs doing today we would attract a serious criminal investigation, and that is a fact.

When the ASX summarised the following misleading findings for a government enquiry last year it was enough proof for me that they are in fact happy to endorse stock market manipulation by brokerage firms and institutions. Some findings to date in other international stock markets regarding this manipulative trading style have been shocking to say the least

Summary of the ASX Review Findings - Backward-Looking

"The ASX Review found that, to date, there have been no significant supervisory issues raised by algorithmic trading on the ASX cash equity market. While there has been an increase in customer complaints to ASX about 'unusual' patterns of behaviour attributable to algorithmic trading, ASXMS investigations of these complaints have not identified any instances of market manipulation directly related to algorithmic trading. That said, the ASX Review found that orders entered by algorithms can create dynamic price movement not previously observed by investors that can (from an historical interpretation perspective) appear to be prima facie evidence of manipulation."

"from an historical interpretation perspective"...

Interesting choice of words to pull wool over the eyes of a naive government... and sadly it appeared to work.

In short, if the government banned the bots, you, I and all of the "mums & dads" investors out there would have much healthier looking portfolios.