Algorithmic trading and power markets: challenges and opportunities in Europe's energy crisis
Commodities Focus
00:00
Algorithm Trading and the Human Parts
The argument that algorithms drive market prices is not in a sense not valid as most algorithms are programmed by humans, right? They only do what a human said. We're working on that but still away from fully self deciding models that I don't know take speculative positions. And that's the second component I think the market is still driven. This is at an open fundamentals because people hedge against imbalance. So essentially it all still comes down to human error. For instance, a few traders told me why it was particularly bad last year. It's because Algo's they are kind of programmed to react to certain scenario that happened in the past. Last year we had so many situations when none of
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