A recent Forbes article discusses how much control the quants are now wielding in the stock market.The article states that 70% of all equity volume is driven by computer models and that these models continue to trigger surges in buy or sell orders. Some 30% of all trades are being done in dark pools — alternative trading systems (also known as the upstairs market). Given the hidden nature of this activity, ordinary investors are fighting with one arm tied behind their back and should beware.
The Power of the Quants
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