AI, digital assets and the economy

Computer algorithms automate financial market asset trading in algorithmic trading. Market data, including price, volume and timing, guides these algorithms to execute transactions at appropriate speeds and volumes. The objective is to make trade choices without human intervention so as to speed up execution, minimise expenses and evaluate massive volumes of data for better strategies. Algorithmic trading accounts for 60-75% of activity in financial markets, which allows high-frequency trading, reduces human error and allows trading methods that were previously inconceivable at such speed and scale.

However, trading algorithms did not appear suddenly - it was conceived in the 1970s by the New York Stock Exchange (NYSE) when computers and technology changed financial markets. Before algorithmic trading, brokers personally called or placed orders for most market transactions. Trading was sluggish and depended on human decision-making so resulting in emotional biases, blunders and delays.…