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Nothing new here - the problems with computer aided stock trading go back two decades:

This was from an article in the NY Times back in 1989:

http://www.nytimes.com/1989/11/09/business/market-place-asse...

"Money managers engaged in the version of program trading known as tactical asset allocation, which involves using computer models to signal when to shift assets among stocks, bonds and cash equivalents like Treasury bills, concede their trades may be disruptive. But they disagree with Mr. Phelan that the technique is as potentially destructive as portfolio insurance."



I suppose what is new is the speed of execution.




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