That's a fairly simple explanation. I have been looking into the Bot thing, and there are so many other ways they are used:
You can write a Bot to analyse numerical data from an announcement (say, the company quarterly, which is disclosed in a standard format), compare it to previous quarterlies and company projections, decide whether the results are bullish or bearish, and trade the stock accordingly. The Bots are mathematical models/algorithms that generate a decision output based on the inputs the programmer chooses as relevant. Of course, being computer based, the bot can go through this comparison and decision process in an instant, whereas the rest of us need to take a bit of time to digest the info.
I assume there are Bots that perform TA on a stock in essentially real time and make trading decisions as quickly based on the TA method the programmer has chosen.
Of course the only way to really prevent this sort of thing occurring is to go back to old school trading where everyone stands in a room and yells at each other - much like an online forum but face to face :-)
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