Algorithmic Trading and Machine Learning. A short overview (I)
Transactions done by automated systems on electronic markets increased in volume significantly, over the past few years, getting to the point where they are dwarfing the rest on all major exchanges. As an example, the volume of trades made from co-location (systems located in the proximity of the exchange) went up from 10% in 2010 to over 50% in 2016. Naturally, a question arises: "Why is there so much automated trading"? One of the answers might be that investors are optimistic.