In the context of modern equity markets, algorithmic trading has significantly influenced the dynamics of liquidity and price discovery. Consider a large institutional investor known for executing block trades, which often has a substantial impact on stock prices due to the size of their trades. As a result, they have begun employing algorithmic trading strategies to minimize market impact and enhance execution efficiency.
This institutional investor has adopted a specific algorithm that adjusts its trading strategy based on real-time market conditions and sentiment. The algorithm's objective is to make trades that are less visible to the market, thereby reducing the likelihood of front-running by other market participants. The investor is evaluating the adoption of a new algorithm that incorporates machine-learning techniques to analyze historical data and predict price movements more accurately.
Which of the following statements best describes a potential advantage of using such machine-learning driven algorithms in algorithmic trading?