Lord Bell and others, movement in ASX100 stocks is hardly from...

Lord Bell and others, movement in ASX100 stocks is hardly from retail investors. The majority of trades are performed by HF algorithmic 24/7 trading systems.

As I previously posted with much less explanation.

Algo trading systems (bots) use pre-programmed instructions to decide whether to buy, sell or stay put. The programs are based on many set of rules as well as technical indicators that will analyse the market data. No one bot is the same as another really.

Bots use simple rules such as Moving averages (200, 100 etc), while others use more complex rules such as machine learning models which is in essence finding patterns. Technical indicators play a big role in algo's using indicators such as RSI, MACD and Bollinger bands etc etc. When the bot(s) receives market data, it applies the rules and indicators to the data to determine whether to make a trade.

For example, if the bot's rules specify that it should buy when the 50 day or say the 100 day moving average crosses above the 200-day moving average, and the bot receives data showing that this has occurred, it will execute a buy order. If the bot's rules specify that it should sell when the stock price or say the RSI reaches a certain level, and the bot receives data showing that the RSI has reached that level, it will execute a sell order.

Trading bots use a combination of multiple technical indicators and rules to make a decision, and many of them also use other information such as FA and news feeds/sentiment analysis to make the decision. News from all over the world. They are usually on 24/7.

Many times there are also competing/opposing bots with a different set of rules in a day. That's your volatility. With that usually comes your spread.

These bots are very complex. I for one love watching the trades LIVE and gives me the opportunity to trade. Without a live trading platform for trading you are really gambling.

Watching it LIVE when the share price climbing up rapidly in an hour etc or the whole day (example Grosvenor incident) and then collapsing like domino's yesterday (because of overnight drop in SGX spot price, Chinese steel company comments, general world data) is amazing to watch and that is your BOTS in full force. Not retail investors.