I know these kinds of algorithms exist, where computers will generate millions of random algorithms on their own, and some of them turn out to be very successful at solving a specific problem, my question is, what is the status of this in trading? Surely these kinds of randomly-generated algorithms are used right now right in the markets. Wher can I find more information on this?
You should learn more about data-snooping bias. With "randomly-generated algorithms" it is guaranteed that you will find a few to fool you http://www.fooledbyrandomness.com/ http://www.priceactionlab.com/Blog/2012/06/fooled-by-randomness-through-selection-bias/ http://en.wikipedia.org/wiki/Survivorship_bias http://en.wikipedia.org/wiki/Ludic_fallacy