ML-Implode News - Review: The danger of trading machines

``Patterson makes it clear that most algorithmic trading techniques rely on determining the order flow before competitors, thereby producing a "speed war". This is basically a modern form of the "insider trading" practised by the bootleg-gin-sodden company director of 1929 who bought and sold based on prior knowledge of company results. In a fair "level playing-field" market, it would equally be impermissible.
Apart from the algo traders themselves, retail investors trading actively for their own account may have benefited from declining trading costs through the elimination of expensive and sluggish human traders and market-makers. However for individuals who trade only occasionally the benefit is minor and for the great majority, who invest through mutual funds or other managed investment arrangements, the losses appear to be substantial.''

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Review: The danger of trading machines