Re: While they are at it... money grows on trees
And when algos crash, where go the losses ..... other than into private pockets/shady and shadowed numbered accounts?
That depends. One of my banks algos could be trading in the opposite direction to 'mine', thus my desk loses and theirs wins - they get a bigger bonus at my expense.
If the net direction of our algos suffer a trading loss then someone somewhere wins - FX is a zero sum game - my loss is your win and vice versa. It really is that simple.
Don't confuse algorithmic trading with tax avoidance and don't confuse that with tax evasion - they're three very different things.