Enforcing a delay may reduce the incentive to increase speed at the cost of strategic complexity. If the turbulence is caused by the interactions of overly-simplistic momentum agents, then increasing the complexity of the agents will stabilize the market. This should hold to the extend that increased strategy complexity also increases the variety of strategies in the market.<p>Think of the market as a liquid near boiling point. If the energy of the system increases too much, it makes a phase transition. To raise the boiling point, add impurities. This is a flawed metaphor in many ways, but it might offer a new intuition for you. Unfortunately, in the case of the market (and many systems) efficiency is the enemy of stability.<p>If you prefer a project-planning metaphor: BigCo executives have caught Agile fever. They see that 2-month sprints are more effective than 2-year project plans and they&#x27;ve heard their competitors are finding great benefit from 2-week sprints. BigCo decides to leapfrog the competition and goes straight to 2-minute sprints. They&#x27;ve tested their engineers and found that 2-minutes seems to be a lower bound on writing a chunk of useful code. The executives declare that all engineers must report accomplishments and re-plan their next activities every 2 minutes in accordance with proper Agile workflow.<p>Obviously, extreme speed is disastrous. I&#x27;m not saying to slow down the market to making an order once monthly. Just slow down from nanoseconds.<p>If in doubt, build a small simulation. Simple agent-based models can produce very interesting phenomena.