here’s an interesting piece about bot trading. It was written 7...

here’s an interesting piece about bot trading. It was written 7 years ago so not sure how well it holds up in today’s trading climate and technology, but still an interesting read.

https://www.google.com.au/amp/s/amp.smh.com.au/money/investing/share-wars-how-the-robots-are-robbing-you-20120825-24t4t.html

In terms of how do they get around the brokerage, how much do they pay if any etc I don’t know...but I’m sure many pathways and avenues have been created to make bot trading at small increments a viable practice, when IMO they should be made illegal.

Nonetheless our bot is here. And IMO it’s here for one of the following scenarios:

a) to artificially prop up the SP in an attempt to create buying depth at the pip or two below, to then dump a sizeable position into. Or;

b) it is an accumulation bot. If it is an accumulation bot then, at these volumes and intervals, you’re looking at an accumulation of about 50,000 to 60,000 shares per day. If we say there’s 20 trading days in a month and assume the bot is active each day, that’s an accumulation of 1mil to 1.2mil shares per month.

This bot has been here for longer than a month, and has been active most days. So IMO it’s a way to accumulate while remaining insignificant and under the radar.

If you think about it, if someone was to purchase 1.2mil shares with 1 purchase, that’s about a $45k - $50k purchase that would probably result in a line wipe or two. This would grab our attention. We would be like “big buy”, “line wipe” “news must be imminent” etc and a bit of excitement may be created by such a trade. It might entice other punters to jump on. And so if the buyer was wanting to accumulate more, they will now have to cough up a bit more cash to do so.

But using this strategy of small volume & interval purchases the market is like MEH. Goes unnoticed. No one cares.

A good stealthy strategy

all IMO

GLTAH