Why Algo Traders See Looming ‘Chaos’ In the Markets


As computer-driven algorithmic trading becomes an increasingly more important factor in the market, the recent massive shift towards a bearish stance among a subset of these programs has worrying implications. “This is like the chaos bet,” according to Kathryn Kaminski, chief research strategist and co-manager of a managed futures portfolio at AlphaSimplex Group, as quoted by The Wall Street Journal. 

“Pretty much any…



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