Parallel to the market recovery, investor optimism has been become increasingly bullish the past few months. Of course, there is always a place for “positive thinking”, however, one shouldn’t lose track of reality: We’ve recently seen improving numbers from the US economy, worrying signs from China, a “worse than expected” situation in Europe and “unexpected troubles” in the mid-East that contribute to rising energy costs. Read more

Tags algo trading - market nervousness - market trend - positive thinking - sentiment volatility - system trading - worse than expected

Algorithmic trading, aka algo-, black-box or robo-trading is using automated computer software to create market orders. The computer algorithm decides on timing, price, position sizing and can be executed without human intervention. In recent years, large pension funds and institutional traders have implemented algo-trading to minimize market impact, i.e. divide large trades into smaller orders. Read more

Tags algo trading - algorithmic trading - black box trading - bull bear psychology - confirmation bias - crowd psychology - investor psychology - market prediction - market psychology - risk on risk off - robo trading - sentiment average - sentiment momentum