Human beings’ decision-making processes are generally influenced by two typical cognitive biases: representativeness heuristic bias and conservatism bias. Previous studies found that the two cognitive biases cause investors to misreact to past stock earnings. This paper argues that the two...

Modern Algorithmic Trading ("Algo") allows institutional investors and traders to liquidate or establish big security positions in a fully automated or low-touch manner. Most existing academic or industrial Algos focus on how to "slice" a big parent order into smaller child orders over a given...