Kraig Biocraft Laboratories Inc (KBLB)

[Money4Nothing-M4N]

“Once investors realize their stop losses have kicked in, they usually buy back their securities,...”

Algo trading doesn’t work that way I don’t think. If a flurry of buying by non algo traders causes a reversal, THEN the algo traders will get back in. Not because they changed their minds, but because the trend reversed.

For those who don’t know, algo trading is just a fancy way of putting in orders based on market conditions.

e.g. sell my position when the 50 period EMA crosses the 100 and the volume is above X. It’s done by a computer. So the algo traders aren’t sitting there watching. The computer is.

If others see the great buying opportunity and quickly buy up the cheap shares, that may send the 50 period EMA back above the 100 and the algo trader may have an automatic order there to get back in.

At least that’s how I understand algo trading. Emotionless trading done by computers based on set parameters. I could very well be wrong. It’s interesting though.