Algo Traders-Loosers on the new open Fed
No more Cool Aid and scanning of texts from pressreleases from the Fed. Volumes to dry up further?
“Computer trading programs face two dilemmas. There is no history of how security prices have reacted during a press conference with the U.S. central bank chief, and dialogue from the briefing will be spoken, rather than transmitted as text.
Computer-driven trading programs are designed to recognize text, so the nuances of Bernanke’s answers to reporters will be lost, or at least delayed, as humans intervene. That will make this inaugural conference a learning lesson for future Bernanke press briefings.”