Use of AI in trading
"Artificial intelligence is to trading what fire was to the cavemen."
Using AI, robot-advisers analyze millions of data points and execute trades at the optimal price, analysts forecast markets with greater accuracy and trading firms efficiently mitigate risk to provide for higher returns.
Another advantage of using AI in trading is execution of trades in no time when a signal is generated. In human touch it may take about 5 to 30 seconds to place an order. So an AI system is able to take the entry at right point.
AI Technologies for Profitable Stock Trading.
Artificial intelligence trading strategies get increasingly sophisticated as the systems learn from their own experience. Thus, today, they offer indisputable benefits to users by allowing:
- Pattern detection. AI software analyzes historical data and sees recurrent patterns in stock price dynamics to identify the right strategy for an investor.
- Predictive sentiment-based trading. AI programs can incorporate data from news and social media into their analyses, making decisions based on the dataset much more extensive than conventional technical analysis would allow.
- Speed trading. With every millisecond counting in stock trading, trading AI apps can save you time and money by facilitating instant decisions and actions.
Future of AI in Trading
The future of trading belongs to Artificial Intelligence. Computing already revolutionized financial trading once, it facilitated enormous numbers of calculations in a fraction of a second, and to track markets that shift in light speed. Now AI trading systems are poised to foster a second wave of innovation, one that will be the most significant transformation in finance history.
AI conquers Wall Street.
In 2010, high-frequency and algorithm trade accounted for 60% to 70% of trading in the US alone. By 2014, this number rose to 75%. By 2017, JPMorgan reported that traditional traders represented a mere 10% of the trading volume.
Artificial Intelligence can revolutionize cryptocurrency trading.
Cryptocurrency trading & Artificial Intelligence benefits
Trading cryptocurrencies is risky in the same way in which the stock market may be dangerous; more specifically when trading is done by humans who are profoundly affected by emotions. When markets begin to crash, it sets into motion a collective sort of panic attack that leads to impulsive selling, which later turns into disappointment when the markets bounce back higher than ever.
This is historically the pitfall of the vast majority of human traders. A simple way to stop these emotional errors is to use AI platforms to perform exchange operations. If the human trader removes themselves (and their emotions) from the situation, and alternatively base their trading on techniques generated by Artificial Intelligence, they’re much more likely to succeed.