In that sense, the more people would use the software, the more profitable it becomes.
The software thinks the price of some stock will increase, so it buys the stock. If more people use the software, more will buy the stock, so the price rise even faster
Yep, I almost wanted to add that as well. TA doesn't work and I think this has been (kind of) proven. Though if you look into it just superficially, you'll see that it's a total sham/self deception.
However, it does not mean that the system we're talking about would create a positive feedback loop. (And, if it would, that would probably also be bad and just waiting to be exploited by some other players.) Because even if TA is fake, IF their system works they somehow have an algorithm that works that may to some extent be based on some indicators. (BTW, looking at the comment it's not clear that they simply use TA. The guy just said "spent a month researching technical indicators and quantitative analysis,".)
The thing is that, based on what they said is that it's some tunable algorithm that tries to extract some information. And even if TA worked (which I don't think it does) acting on those formations would still erase the signal or the usefullness of the signal, because when someone uses TA looking for these random shapes, they still try to predict the future and act ahead of the others.
In that sense, the more people would use the software, the more profitable it becomes.
The software thinks the price of some stock will increase, so it buys the stock. If more people use the software, more will buy the stock, so the price rise even faster