Recently there are more and more robots that follow the short-term trends in stock markets and use it to bring immediate rewards to their owners. Since rewards don't come from thin air, this necessarily causes loses to others. Who exactly is the loser?
Possibly, some of the robots are not as good as others in predicting the trends, so they make some of the loses. But eventually those inefficient robots will be abandoned. Who will be the loser then - are these the long-term investors?
Specifically: suppose I am a long-term investor - I buy an ETN for 20 years, which, according to historical data, will probably bring me nice profits.
However, now there are also short-term robots, who make a lot of money from day trading. For the sake of discussion, let's assume that these robots are perfect - they always buy at the minimum daily price, and sell at the maximum daily price.
Does it mean that my long-term profits will be lower? Maybe I'll even have no long-term profits?