Re: Algorithmic trading
Machines do pick what they trade. Certain large banks have fully automated systems running their own books. They are carefully monitored by humans because once you get into automation they can run up rather large positions rather quickly. Plus, once a computer starts doing something ... mechanically ... then some smart person, or better programmed computer, can take advantage of foreknowledge of what the original machine is going to do.
Incidentally, this is why computers are much better than humans at chess but nowhere near as good as them at poker - yet - in spite of the enormous money to be made by an unbeatable poker bot and the relatively minor rewards for making good heuristics for minimising the gamespace in chess.
PS. My portfolio: 40% UK, 20%US, 15% EU, 20% Asia (exc. Japan), 5% Japan.
Biting the hand that feeds IT
