If someone were to ask you what percentage of buy-side stock trading is executed via humans vs. computers, how would you answer? Some people might be tempted to say the majority of all trades are now computer driven. You certainly get that feeling reading media coverage.

The truth is that human-driven trading still accounts for more volume. But in a significant milestone, those percentages will likely even out next year.

The buy-side use of algorithms will rise to 35 percent of volume next year, while buy-side use of high-touch, computer-dependent trading will fall to 35 percent of volume, according to estimates from the TABB Group. So the two will be even for the first time. Greenwich Associates has arrived at a similar conclusion.

But Traders notes a twist. While algorithmic share is increasing, the volume of algorithmic trades will drop from 10 percent in 2010 to 8 percent in 2011, according to TABB. This speaks to the new algorithmic savvy of the buy-side, which has been stepping up their investment in their own systems. At the same time, we may see the high-touch traders step up their game with better research for hard to trade stocks. 

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