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What Happens When Humans and Machines Sell at Once?

03 September 2018

The Wall Street Journal has an article on the potential problem of “stop-loss” sell orders in an era of increasing algorithmic trading. The article highlights the research of Bridgeton Research Group, which utilizes computer models to analyze and predict market trading patterns. According to Bridgeton’s research on stop-loss orders (directives to sell a position once a price falls below a specified level), the increasing influence of machine driven funds (i.e. artificial intelligence) has the potential to create further volatility in future market corrections.