**5. Conclusions**

In this paper, we have created a simulated asset market and modeled common AT strategies. We conducted two experiments in this market. Our contribution is the creation of a platform capable of studying the impact of AT trading on market quality directly. This expands our capability of evaluating AT beyond conventional empirical studies. It provides a method of cross-checking empirical findings, gaining deeper insights into them, and also potentially forming new hypotheses for further empirical research.

In Experiment 1, we investigated the impact of AT on market liquidity. We simulated a gradual rise in the participation of AT in a market with fundamental and technical traders of both AT and human types. We found that liquidity rose sharply as AT was introduced with most of the liquidity rise realized at just 10% AT participation. This leads to an interesting hypothesis for future empirical work to see if there is such an early threshold for reaping the liquidity benefits of AT. This could hold important implications for developing countries with nascent AT participation.

In Experiment 2 we investigated the impact of AT on price discovery. We simulated a rise in algorithmic pairs trading that apply statistical arbitrage to make profits based on short-term price correlations. In this experiment, we found high price correlations between the pair traded, even when fundamental values had very little correlation. This supports some findings in the empirical literature that indicate AT leading to price movements away from fundamentals.

**Author Contributions:** Conceptualization, P.M.; Methodology, P.M. and C.C.; Software, C.C., T.W., and B.X.; Validation, P.M., C.C., T.W. and B.X.; Formal Analysis, P.M., C.C., T.W. and B.X.; Investigation, P.M., C.C., T.W. and B.X.; Resources, P.M., and C.C.; Data Curation, P.M., C.C., T.W. and B.X.; Writing-Original Draft Preparation, P.M., C.C., T.W. and B.X.; Writing-Review & Editing, P.M., C.C. and T.W.; Visualization, P.M., C.C., T.W. and B.X.; Supervision, P.M., and C.C.; Project Administration, P.M. and C.C.; Funding Acquisition, P.M. and C.C.

**Funding:** This research was funded by research grants at Connecticut College.

**Conflicts of Interest:** The authors declare no conflict of interest.
