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smoorman1024 · 3914 days ago · link · · parent · post: Let it be resolved that algorithmic trading represents an immediate existential threat to the modern world | ThoughtInfection
A lot of you might be interested in Knight Capital Group losing a whole bunch of money trading. Knight Unhorsed via Dealbreaker I use it as an example of when an HFT outfit made some huge mistakes and is now crippled because of the money they lost. Just consider this a force that pushes the market towards efficiency and not toward inefficiency. And what did the smart guys do while they were throwing money away? They caught it, and made all sorts of profit. It's like the flash crash, some person fat fingered in Kansas and what did the smart people do? They traded through it and made tons of money! Bringing the market back up to where it should've been quicker than you would expect otherwise.