• Just 10% of trading is regular stock picking, JPMorgan estimates Just 10% of trading is regular stock picking, JPMorgan estimates
  • The U.S. Stock Market Belongs to Bots The U.S. Stock Market Belongs to Bots
  • Why Are Markets So Volatile? It’s Not Just the Coronavirus. Why Are Markets So Volatile? It’s Not Just the Coronavirus.
  • Why stock market traders should be terrified of robots in the next decade Why stock market traders should be terrified of robots in the next decade
  • Machines are driving Wall Street's wild ride, not humans Machines are driving Wall Street's wild ride, not humans
The Bot Report – The facts on Robo-trading, Robo-Advising

The Articles Wall Street Would Prefer You Ignored

In the last five years, automation has had a positive impact on the bottom line in Wall Street as firms migrated to bot-driven, algorithmic trading.

While good for The Street, the news reports a paradigm shift where many traders are at a disadvantage, trading against a market that is majority bot-driven and subject to more dramatic swings.

We’ve compiled some of those reports below to serve as an educational resource:

“The U.S. Stock Market Belongs to Bots”

Bloomberg | June. 2017

 

Computerized algorithmic trading “definitely had an impact” on Monday’s violent market swing

US Treasury Secretary Steven Mnuchin, CNBC | Feb. 2018

 

“The stockmarket is now run by computers, algorithms and passive managers”

The Economist | Dec. 2019

The Expert Warnings

  • Yahoo Finance :: Why stock market traders should be terrified of robots in the next decade Yahoo Finance :: Why stock market traders should be terrified of robots in the next decade
  • CNBC :: Just 10% of trading is regular stock picking, JPMorgan estimates CNBC :: Just 10% of trading is regular stock picking, JPMorgan estimates
  • CNBC :: Cramer on computer traders: ‘Why don’t they go work for NASA’... CNBC :: Cramer on computer traders: ‘Why don’t they go work for NASA’...
  • WSJ :: Why Are Markets So Volatile? It’s Not Just the Coronavirus. WSJ :: Why Are Markets So Volatile? It’s Not Just the Coronavirus.
  • Business Insider :: 'Big Short' investor Michael Burry is calling passive investment... Business Insider :: 'Big Short' investor Michael Burry is calling passive investment...
  • Seeking Alpha :: The Panic Playbook - A Blueprint For Market Crises Seeking Alpha :: The Panic Playbook - A Blueprint For Market Crises
  • Investing Daily :: Rise of The Machines: Beware of “Robo-Trading” Investing Daily :: Rise of The Machines: Beware of “Robo-Trading”
  • Nasdaq :: Rise of the Machines, Part 1: How Increased Automation in Financial Services Impacts... Nasdaq :: Rise of the Machines, Part 1: How Increased Automation in Financial Services Impacts...
  • CNN Money :: Machines are driving Wall Street's wild ride, not humans CNN Money :: Machines are driving Wall Street's wild ride, not humans
  • Forbes :: Artificial Intelligence Is Superseding Well-Paying Wall Street Jobs Forbes :: Artificial Intelligence Is Superseding Well-Paying Wall Street Jobs
“Eighty percent of daily volume in the U.S. is done by machines, so what you get is a lack of focus on earnings, a lack of focus on outlooks and you just get short-term movements based on very specific data that is released every day and that creates noise...”

Guy De Blonay, fund manager at Jupiter Asset Management, CNBC | Dec. 2018

The Data – Bots Dominate

  • Financial Times :: Volatility: how ‘algos’ changed the rhythm of the market Financial Times :: Volatility: how ‘algos’ changed the rhythm of the market
  • Business Insider :: Tiny trades are making up a record share of market... Business Insider :: Tiny trades are making up a record share of market...
  • WSJ :: Tiny ‘Odd Lot’ Trades Reach Record Share of U.S. Stock Market WSJ :: Tiny ‘Odd Lot’ Trades Reach Record Share of U.S. Stock Market
  • Yahoo Finance :: What You Should Know About High Frequency Traders Yahoo Finance :: What You Should Know About High Frequency Traders
  • CNBC :: Sell-offs could be down to machines that control 80% of the US stock market... CNBC :: Sell-offs could be down to machines that control 80% of the US stock market...
  • The Economist :: The rise of the financial machines The Economist :: The rise of the financial machines
  • WSJ :: Behind the Market Swoon - The Herdlike Behavior of Computerized Trading WSJ :: Behind the Market Swoon - The Herdlike Behavior of Computerized Trading
  • Reuters :: Data overload - commodity hedge funds close as computers dominate Reuters :: Data overload - commodity hedge funds close as computers dominate
  • Bloomberg :: The U.S. Stock Market Belongs to Bots Bloomberg :: The U.S. Stock Market Belongs to Bots
  • Monterey Herald :: Attack of the stock market zombies Monterey Herald :: Attack of the stock market zombies
  • ZDNet :: Market volatility: Fake news spooks trading algorithms ZDNet :: Market volatility: Fake news spooks trading algorithms
  • Seeking Alpha :: How Systematic, Algorithmic Trading Impacts Stocks... Seeking Alpha :: How Systematic, Algorithmic Trading Impacts Stocks...
  • The Economist :: The stockmarket is now run by computers, algorithms... The Economist :: The stockmarket is now run by computers, algorithms...
  • CNBC :: Mnuchin - Computerized trading ‘definitely’ helped drive this week’s big market swings CNBC :: Mnuchin - Computerized trading ‘definitely’ helped drive this week’s big market swings

Now Robo-Advising Is Rising

Robots
  • Vanguard Bets on Robo-Only Adviser Vanguard Bets on Robo-Only Adviser
  • SoFi comes under scrutiny after its robo forces clients into free ETFs SoFi comes under scrutiny after its robo forces clients into free ETFs
  • JP Morgan is rolling out a robo-adviser with free ETFs to lure new investors JP Morgan is rolling out a robo-adviser with free ETFs to lure new investors
  • In 2023, Robots Will Invest $1.26 Trillion of Our Money In 2023, Robots Will Invest $1.26 Trillion of Our Money
  • Goldman’s robo advisor is ready to run Goldman’s robo advisor is ready to run
  • Citigroup unveils free robo-advisor for customers with at least $50,000 at the bank Citigroup unveils free robo-advisor for customers with at least $50,000 at the bank
  • Robo-Advisors to Manage $1.4T in 2020, $2.5T by 2023 Robo-Advisors to Manage $1.4T in 2020, $2.5T by 2023

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