Automation Without Oversight: When Technology Amplifies Trading Errors

The emotional aspect of trading is eliminated by automation, but the risks remain. If the rules have poor design quality, errors occur at an accelerated pace and magnitude. Without monitoring, trading errors will increase rather than be corrected.
Market dynamics evolve at a rate that outpaces non-adaptive systems. Therefore, traders must monitor system activity and take action when specific theories cease to hold. As a support to trading decisions, technology must help maintain focus and adherence to sound practices.

