Algo trades6 May 2022 09:18
I know this topic been discussed a few times but courtesy of a poster on ALL board, I like to share nonetheless - interesting notion and certainly food for thoughts:
"An example is someone trying to acquire a good position without driving the price up, so an algo will work out when to sell and keep the price down(can basically be done by any sophisticated market maker (and I mean Goldman,JPM,UBS, not Shore or Peel Hunt) to facilitate clients who say want to build a good position under the radar. Positions can also be hidden by using nominees like State Street or Pershing to hold the shares on your behalf-quite a few US institutions do this so the rest of "The Street" cannot see what they are doing.
It is very frustrating, but not much us PIs can do about it-but do remember-however,inefficient or manipulated a market is-true value always outs eventually."
ATB