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Electronic Trading: Robot Wars Hit Wall Street

Wall St.'s Robot Traders
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Dramatic market moves have become commonplace, and those looking for a fundamental explanation are missing a significant structural change: The majority of stock trades now originate with so-called "high frequency" funds, which use computers programmed with obscure mathematical correlations to execute trades. The computers trade in and out of stocks at light speed, sans human intervention -- no trader, no economist, no chart tracker. These funds argue that computers aren't swayed by emotion, and naturally move much faster than a person ever could.

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