AI Trading: The Market’s Hidden Time Bomb It starts with a simple command: “Sell.” One AI system at a major hedge fund detects a risk and executes an automated sell order. But what happens when every AI—across multiple firms—interprets the same market signals in the same way? A cascade begins, sell orders flood the market, and before human traders can intervene, the market free-falls. Sounds extreme? It’s not. This is the very real risk posed by AI-driven trading. In today’s world, roughly 70% of market trades are algorithmic—meaning they’re executed by software, not human decision-making. As financial firms race to integrate artificial intelligence into their trading strategies, we’re not just witnessing an evolution—we’re walking blindly into a systemic catastrophe. AI…
Continue reading as a Citizen
Dedollarize News is free to read for signed-up members. Become a Citizen to finish this article, save what matters, and get the daily “While You Were Distracted” briefing.
No credit card required.
