I am inclined to think that some of the fear of Algo trading is just a little irrational.
Your suggestion that we should assume that BOTs have inside information on stop levels is bizarre. (I am inclined to agree with Skypilot that anyone setting fixed stop loss orders is just asking to have their money taken from them.)
Algo trading has been around for 25 years+, and has often degraded the efficiency of the market and generally provided entertainment and opportunities for strategic traders. I, for one, would miss them if they were banned.
