Algos are based on standard-deviation models that cause them to sell when price moves are 3 standard deviations away from normal, precisely when human traders would be piling into positions as momentum accelerates, creating a systematic conflict with trend-following strategies.

causalpending

Speaker

Stanley Druckenmiller

Evidence Quote

a lot of these algos apparently are based on standard deviation models so just when you would think you're you're supposed to pollen and lift off their models must tell them because you're three standard deviations are where it's supposed to be they come in with these massive programs that go against the beginning of the trend

Source

Stanley F. Druckenmiller: Monetary Policy & MarketsReal Vision
Created: 8/10/2026, 10:51:28 PM

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