Why traders should be terrified of the robots in the new decade

The powerful algorithmic robots that have dominated global markets over the last decade - generating insane movements in asset prices in the process - are likely to become even more powerful in the new decade.

The ultimate goal: successful trading on the stock markets will become even more difficult for most.

"The whole market infrastructure is changing," said Tom Essaye, a veteran trader and founder of Sevens Report Research.

Essaye says that "for most of us, especially traders who are struggling with this, extreme short-term volatility is something we will have to get used to. And somehow we need to integrate this into our trading plan and figure out how to handle it with risk management from there onwards. "

He added: "Markets are becoming more volatile in the short term for no good reason and this can very easily get you out of deals, which we all know will hurt our portfolio performance in the long run."

Undoubtedly, the last decade in the markets has rewritten the way money is made in equities.

The rise in algorithmic trading programs has forced traders to resort to simple methods of calculating asset valuations, thereby finding overvalued or undervalued stocks. For some, even the earnings reports and future business results estimates are already as outdated as the first iPhone.

In place of these already primitive shipments are programs that scan the flow of information at the moment and trade stocks based on these headings. Very little human intervention is needed here.

Trading programs are expected to become more sophisticated and good with the advancement of computer technology. At the same time, the size of the algorithmic global trading market is expected to grow at a compound annual rate of 11.1% to $ 18.8 billion from 2019 to 2024.

So, buckle up, traders.