Watson: the future of algo trading ?

News emerged today that the IBM supercomputer which defeated the champions of "Jeopardy!" almost a year ago was hired by City Group to analyse financial, economic and client data. Its main capabilities include translating natural human language into quantifiable objective data, an extremely refined form of what some algorithmic trading bots can accomplish at the moment. It will most likely be used to read and analyse SEC reports and market developments and issue prompt trading suggestions. Ladies and gentlemen welcome to the future!

Nice old algo-trading in USD/HUF

A time will come when human trading will become obsolete, with algorithmic, or robo, or the so-called black box trading tacking its place. Why take the time and analyze the market direction when you can have a high frequency robo-trader which takes advantage of pockets of liquidity and scalps a few pips out of the market ? Some recent examples include the May 2010 Flash crash when the DOW slumped for more than 1000 points as what seems to be the result of high frequency trading and algorithmic trading. What happens if there will be an error in the Matrix again ?