You tend to hear high frequency traders refer to the code that makes pricing and trading decisions as a system, or signal, or model, or (very occasionally) algo (all refer to slightly different things) but I have never heard them refer to the code that makes trading decisions as a bot or algobot.

Source: I used to work in high frequency trading.

A quick Googling reveals that some people do use algobot to talk about HFT software.

I guess it's a dumbed down idea to sell to the masses.

I'm in the industry, nobody calls it an "algobot". It sounds ridiculous and doesn't really express much.

I'm guessing someone was winding up the reporter, as from reading the article it seems obvious the person is in over their head.

Reminds me of the (possibly apocryphal) story of how a bunch of teenagers made fun of a 20/20 reporter by describing a made up word "mosh pit", and then it caught on.