ARTIFICIAL INTELLIGENCE IN MODERN TRADING.
Nowadays, the traditional trading method as manual trading is gradually losing its relevance.
Traders began looking for a technical specialist to help them to keep earning.
With mathematicians and analysts, programmers have provided the market with a useful tool — trading robots (or bots) that conduct trading operations using embedded algorithms and provided data. The popularity of algorithmic trading on exchanges has led to the emergence of high-frequency trading.
Without the developers of trading robots, traders can no longer trade with small spreads at high speed and concentration. Some create strategies, others write algorithms, and bots trade on them.
This was the case until recently.
With increasing competition in the market and processing large amounts of data, bots’ capabilities have become insufficient.
In automated trading, machines began to replace them, which, with the same performance, can still think like a person.
This is how models of neural networks and artificial intelligence appeared.
Professional traders are periodically forced to modernize their developments due to increasing competition. It is not enough to use only trading bots for trading since you have to compete with artificial intelligence.
Traders using only bots are seeing a drop in earnings. Conversely, those who use artificial intelligence to trade on exchanges perform better than the market average.
ABILITY OF ARTIFICIAL INTELLIGENCE IN EXCHANGE TRADING.
Compared to bots that need to be continuously reconfigured, artificial intelligence can operate independently without human intervention. AI can come up with trading strategies, test and refine them, take into account market trends.
Here are some other AI abilities:
◽️ collection of information from news, social networks, thematic sites for its application in fundamental analysis;
◽️ processing of market data, stock indices for their application in technical analysis;
◽️ advising on medium-term investments;
◽️ asset portfolio management, its diversification;
◽️ building behavioral models during periods of market shocks;
◽️ identification of cases of collusion and manipulation in the market.
ADVANTAGES OF ARTIFICIAL INTELLIGENCE.
✔️ Trading speed
Artificial intelligence multiplies the speed of trading operations.
✔️ Multitasking
Trained machines are capable of processing massive amounts of data in a matter of minutes. Similarly, they can find and manipulate historical data and recurring patterns for smart trading that are often hidden, inaccessible, or not apparent to people.
✔️ Sentiment analysis and forecasting
By analyzing the headlines of articles, news, posts on social networks, blogs, and other thematic sources, artificial intelligence can predict the movement of asset prices.
✔️ Self-study
Artificial intelligence can improve its skills.
He will learn from his own mistakes and continuously improve.
Praem Capital is actively introducing artificial intelligence in stock trading and all other areas of its activity.
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