Yeah algo trading is growing rapidly, but it's not a cure all. Algo's are written by people who have emotions, people that don't like losing money. They'll naturally take opportunities away from some, while opening up new ones for clever traders. No one entity will ever be the king of the market for long, it's too competitive a market for that. Those who can adapt will survive.
Also, many if not most algos trade in the range of micro seconds to a few seconds, exploiting opportunities that only a computer could.
If anyone is interested in learning more, look up "The Algorithmic Trading Podcast" in Itunes Podcasting section of the Itunes store. While you're there, look up "Robert Shiller" as well. He's got lectures up at Itunes U. It's market basics that he covers, but he also talks about the history of trading. I really enjoyed his lecture on the history of futures markets in the ancient rice markets of Japan.
Gauging from my own experience, the number one flaw of newbies is that they have little to no knowledge of market structure and mechanics. They visit babypips and 'graduate,' thinking they are ready to build a custom trading system with indicators that will make them rich in no time flat.
Ask them how price moves and about order types, or where liquidity comes from and they'll have no idea what you're talking about. They are basically doomed to destruction from the very beginning.
Sorry, I know I went way off the topic of algos, just kinda saying what comes to mind.
Algo's are written by people who have emotions, people that don't like losing money
Algo trading hasn't emotions. The software I use is fully based on technical analysis. No guessing, no decision making, no stress, no "I'm tired or exited and do judge things wrong". Just simple chart reading; maybe it's not that simple but it works.
The article is interesting if you look for short term returns. Do a combo and don't put all your eggs..