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‘Zero intelligence’ trading closely mimics stock

This is so interesting:

A model that assumes stock market traders have zero intelligence has been found to mimic the behaviour of the London Stock Exchange very closely. However, the surprising result does not mean traders are actually just buying and selling at random, say researchers. Instead, it suggests that the movement of markets depend less on the strategic behaviour of traders and more on the structure and constraints of the trading system itself.

[thanks UI Designer]

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