Square (SQ) is a great example of a stock where applying an algorithm to it would have saved a large amount of drawdown, heartburn, and capital.
Half the battle is staying out when things are trending down. The most innovative hedge funds may have strong fundamental views on individual stocks, but increasingly, are applying algos as a timing tool for entry and for exit. Those that do not are dinosaurs.
We will monitor it to see if it goes long. Every merchant I've spoken to likes them. But for entry and for exit of an expensive growth stock, you need a strong algo.
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