Machine Learning Art v. Science The Next Step for Trading Algorithms

Trading algorithms continue to dominate financial markets with both good and bad affects. In predictable steady markets they take the emotion out and adhere to a machines rhythm. The bad is when it breaks from left field as we saw in the past week with increased volatility and panic. We are effectively getting repetitive fractals of varying degree, but how do we predict fractals on new unseen fractals? Algorithms are only as good as the data provided and the ability of the algorithms to consume it.