I heard that more than 90% of institutional orders are now ran by the algos, so why the heck are we still taking lunch between 12-2 pm EST?
Presume they need some humans to trade against to make $$$'s, ie Retail humans, but the 2hr break is a pain as it's my prime time to trade.
Different algos are run at different times. Some algos automatically adjust when they detect the volume dries up. Basically everything becomes a self fulfilling prophecy. The set up I will take in the morning I would skip at lunch.
I doubt it since the lunch hour stop gunning is about the oldest trick in the book. Stocks in strong up trends with unusually high volume are targets for this old trick.
for stock market, lunch break has been there since day 1. But some exchanges are trying to abolish it exchanges don't like lunch break because they earn less $$$ when there is lunch break. traders like lunch break because they need the break. for derivative market, there is no lunch break.