Stock trading bots trade on stories written by bots

What could possibly go wrong with stock trading software reacting to news stories written by software?

This adds a layer of variability in market dynamics which make some completely unpredictable feedback loop imminent: because if a robot is reacting to a headline written by itself (and it is only a matter of time before Narrative Science is acquired by GETCO or some other HFT behemoth in the latest market manipulation scheme) the epic collapse possibilities are simply stupefying.

And of course no one would ever dream of releasing a deliberately deceptive news story to trick the stock trading bots so they could profit from it, especially considering that these bots can trade tens of thousands of shares in a fraction of a second.

  • Much deception comes from different perceptions.