[erik]

I don't expect wikipedia to be a reliable source of information on this topic, but there is an entry that claims that hedge funds already do this sort of thing: http://en.wikipedia.org/wiki/Program_trading

[mattmaroon]

Oh they're correct, I know some people who write those programs. But they don't publish their algorithms.

[pmorici]

There are companies that base their whole business on this sort of thing ie: http://www.jumptrading.com/