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Not so you "Elitist". - I, a mundane non-elitist got the terminology correct! You probably think I'm some Indian dude who trades Forex and CFD's and spent a fortnights telephone scamming pay just to get a Lamborghini photoshoot done for my Marijuana investment Facebook page cover photo. admit it.
I would probably admire you if you were pulling some elaborate ruse like that.
But to your original question here is my two cents. Some classes of algo's that do better with thicker books that move slower will pull out of the market all together with higher volatility. If we are seeing the bulk of the action come from sweeps that take out 3 to 5 levels at a time, then this is an indicator that certain types of market making algos will likely sit on the side lines. If we are seeing a higher percentage of the movement coming from 1,2,3 tick moves, and there is more corrective action, then then a lot more players will turn algo's on.
There are some models for trading that do better with high volatility and some that do better with low volatility. When we are in an extended period of high volatility, like now, or February for example, a lot of these guys sit it out.
Ian
In the analytical world there is no such thing as art, there is only the science you know and the science you don't know. Characterizing the science you don't know as "art" is a fools game.
