CCTV News, Beijing, December 27 (Reporter Zhang Qian and Wang Yipin) According to the economic voice "World Finance", on the 24th local time in the United States, the Dow Jones Index achieved the worst Christmas Eve trend in history, and the price of crude oil also fell below 43 US dollars on this day. Data shows that behind the rapid decline in the U.S. market in 2018, about 85% of trades were automatically executed. So is this type of automated trading exacerbating market volatility?
Automated execution of trades is primarily controlled by machines, models or passive investing formulas. Speaking of the impact of automatic execution of transactions on the market, Xu Chun, a financial analyst and founder of JiZhi.com, believes that the development of new technologies and AI will cause certain changes in the entire trading mechanism in the future. The impact of automatic execution of transactions on the market is relatively symmetrical. The key is to pay attention to the judgment of market signals.
Zhang Gang, chief analyst at Southwest Securities R&D Center, believes that automatic execution of transactions has stylized characteristics and will have a small impact on market fluctuations. However, automatic execution of transactions often requires intervention in the manual confirmation process, which can be remedied in a timely manner.
Take automatic stock trading software as an example. It generally has automatic functions such as range automatic trading function, indicator formula automatic trading function, automatic buying and selling turning point trading function, automatic stop loss selling function, etc. Xu Chun said that automated transaction execution is still very promising. In the long run, it is a good liquidity provider.
At present, the automatic execution transaction development system is not yet mature and complete, and cannot completely replace investors in investment transactions. It is just an assistance software. Zhang Gang believes that stock trading still requires investors' own knowledge and experience. "In the future development of the investment field, it will be difficult to achieve a perfect investment result relying on a certain model of a certain type of tool."
