The simultaneous triggering of retail algorithmic trading platforms can significantly impact market dynamics, particularly when over 10,000 bots execute market buys within the same hour. This concentrated order flow can lead to widened spreads and imbalanced inventory, posing challenges for market execution.
Traders are advised to monitor futures basis and cross-venue spreads to assess the sustainability of such market moves. These indicators can help differentiate between lasting trends and short-lived technical signals, which may dissipate quickly.
Retail Algo Platforms Triggering Simultaneously Impact Market Dynamics
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