If you are professional trader or at least experienced investor, you should have heard about AI used in creation of smart trading platforms. How do they work, can we trust them, and generally is it worth it? We will uncover these questions right now! Scroll down to start.
AI & Machine Learning for Trading platforms
AI (Artificial Intelligence) and ML (Machine learning) are being tested on different platforms to teach them managing risks and estimating right investment strategy. Platforms are working in auto regime, counting and analyzing the market each single second.
The role of smart algorithms
The big plus of any AI & ML platform is that it doesn’t rely on emotions as people might do. They have smart algorithms allowing them to perform calculation each second without panicking or being too happy and as a result losing control. This is a big bonus, as people mostly can control their emotions making wrong decisions.
After first platforms were launched, numerous algorithms appeared on the market. Here are some of them:
- Trade execution algorithms, breaking up trades into smaller orders for price minimization
- Gaming algorithms, taking advantages of price movements
- Strategy algorithms, basing on real time market data
Machine learning helps to make AI algorithms smart, loading them with older data and giving access to it. ML is optimizing trading platforms a lot.
Human control is still needed
However smart the platform might be, the personal control is still a must. Experienced traders say that even after launching AI & ML Platform working, they check, analyze and correct the program operations, as the algorithms are not perfectly correct.
Generally speaking, when very first smart trading platforms appeared, they showed impressive results making really high profits. However, with growing demand the profit started to decrease. There are numerous smart platform start up today. Probably, if you are a newbie, this would be not the best option for you to start, but if you are skilled expert, you should definitely check out how AI & ML are working to make your money double. Probably that can be called taking a risk in a name of technology!
Editor of IMD News