How well does the robot respond to dramatic events?
In both back testing and live testing, all the major events of recent years have also been characterised by contradictory trading signals. During repeated back testing, and live testing during times of such a threat resulting in a price drop we have observed the robots sitting on their hands and doing nothing at these times. At no point has the robot been in the market when a significant adverse reaction took place. A second factor helps explain this observation, the short trading interval and the gap between trades when trading small numbers of stock reduces the chance of being present when the threat hits. On the other side of the coin, the robots take full advantage of the opportunities these adjustments bring in the wake of the incident. We anticiapate a greater exposure to these threats when we increase trading frequency.
