Document Type
Article
Publication Date
2019
Abstract
Black-box algorithms now account for nearly a third of all U. S. stock trades. It is a mistake to think that these algorithms possess superhuman intelligence. In reality, computers do not have the common sense and wisdom that humans have accumulated by living. Trading algorithms are particularly dangerous because they are so efficient at discovering statistical patterns—but so utterly useless in judging whether the discovered patterns are meaningful.
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Recommended Citation
Smith, Gary N., "Be Wary of Black-Box Trading Algorithms" (2019). Pomona Economics. 3.
https://scholarship.claremont.edu/pomona_fac_econ/3
