Impact Of Artificial Intelligence And Machine Learning on Trading And Investing

[anapodrimaj]

Since technical analysis focuses on volume and price analysis, it seems natural that ML and AI can help here. AI can learn from the patterns used here, and it can develop success algorithms that can change from time to time depending on the situation.

https://www.finextra.com/blogposting/15067/impact-of-artificial-intelligence-and-machine-learning-on-trading-and-investing

[1715075662]

1715075662

[Andrey123]

This is complete nonsense!
There is no evidence that this works.
And to write just a program that will work according to a given algorithm, it's not an artificial intelligence.

If he existed, then if he realized himself, he would not get into such nonsense 

[littlebill16]

I think it's entirely possible. AI have already shown their ability to learn in complex situations such as mastering games like chess and poker, trading in a sense isn't too far different from such things. The difficulty is that it will not be able to understand things from a qualitative point of view, for example if there is negative news about bitcoin, how would the AI quantify that and include it in to their decisions?

[BrewMaster]

that is true but you are forgetting about a very important thing, you are posting this on a bitcoin forum and trading extends to also altcoins. in these markets technical analysis, pattern studies, etc. are not working really. generally speaking these are not accurate to begin with and when you come in crypto market you see that their efficiency drops drastically to a point that all of it becomes useless in most case scenarios.

[littlebill16]

that is true but you are forgetting about a very important thing, you are posting this on a bitcoin forum and trading extends to also altcoins. in these markets technical analysis, pattern studies, etc. are not working really. generally speaking these are not accurate to begin with and when you come in crypto market you see that their efficiency drops drastically to a point that all of it becomes useless in most case scenarios.

It's because TA is so much better suited to more established and proven markets which have shown their resilience. In the same way it would be much more effective if used on well established stocks and shares instead of blue-chips.

[mulukey]

Modern technologies such as AI, machinery have a large impact on the trade and investment of the trader. They help reduce the time spent tracking the market, accurately predicting the value increase and decrease the chart. But machinery is still a machine and it can not replace people completely because the financial market is made by human value so you need to invest yourself a good knowledge of the market. You can use AI and your knowledge to invest.

[Nhebu]

Modern technologies such as AI, machinery have a large impact on the trade and investment of the trader. They help reduce the time spent tracking the market, accurately predicting the value increase and decrease the chart. But machinery is still a machine and it can not replace people completely because the financial market is made by human value so you need to invest yourself a good knowledge of the market. You can use AI and your knowledge to invest.

Although it is a helpful way and can ease our time management problem, the thing is how can it be reliable to use? I am doubt that the machineries can help the trader to gain without his/her presence.

[Koro-Sensei]

Since technical analysis focuses on volume and price analysis, it seems natural that ML and AI can help here. AI can learn from the patterns used here, and it can develop success algorithms that can change from time to time depending on the situation.

https://www.finextra.com/blogposting/15067/impact-of-artificial-intelligence-and-machine-learning-on-trading-and-investing

If this were true at all there would no poverty on the world and the poor will decrease over time but this is all bullish. If such an AI would exist it will only mean it is a future telling calculating computer that can predict all the events in the future. That would be nonsense right? Since none machine exist and the capabilities if AI are pretty much common to use it for convenience purposes only.

[patt0]

This is complete nonsense!
There is no evidence that this works.
And to write just a program that will work according to a given algorithm, it's not an artificial intelligence.

If he existed, then if he realized himself, he would not get into such nonsense 

I think think the project will probably try to use some sort of genetic algorithm. I heard they are quite common in financial markets, so it's nothing new. It takes time for the algorithm to evolve and adjust to the markets, so they can make the best decision given the patterns they read but it's possible. I'm not sure that can be considered artificial intelligence or not, but since there is a learning process, I think it can.

[squatz1]

This is complete nonsense!
There is no evidence that this works.
And to write just a program that will work according to a given algorithm, it's not an artificial intelligence.

If he existed, then if he realized himself, he would not get into such nonsense 

Well I mean it's not nonsense. AI and bot trading is something which is far-reaching in traditional markets and something which is, without a doubt, already in crypto. I wouldn't doubt that people are testing AI machines right now to try to gain historical intelligence of what people do in regard to buying, selling, holding etc. There is a ton of money to be made if something like this can be coded and perfected, I await seeing if someone can pull it off.

Sounds pretty insane, would be horribly (though cool) to see.

[Wind_FURY]

This is complete nonsense!
There is no evidence that this works.
And to write just a program that will work according to a given algorithm, it's not an artificial intelligence.

If he existed, then if he realized himself, he would not get into such nonsense  

Even if they "work", I believe they are very overrated. Especially seeing how volatile cryptocurrencies are. It not only shows how inept most traders are, it also shows that "bots" might also be too "raw" and underdeveloped.

But I wouldn't count them out. There are "bots" developed that beat human players in Go, Chess and Backgammon. They can be further developed to beat other complex games too, like "trading"?

[beheddard]

This is complete nonsense!
There is no evidence that this works.
And to write just a program that will work according to a given algorithm, it's not an artificial intelligence.

If he existed, then if he realized himself, he would not get into such nonsense 

Well I mean it's not nonsense. AI and bot trading is something which is far-reaching in traditional markets and something which is, without a doubt, already in crypto. I wouldn't doubt that people are testing AI machines right now to try to gain historical intelligence of what people do in regard to buying, selling, holding etc. There is a ton of money to be made if something like this can be coded and perfected, I await seeing if someone can pull it off.

Sounds pretty insane, would be horribly (though cool) to see.

Without enough historical data (as you say, collection has already begun), and when things cool down a little (from being so volatile) I could see these things being more effective. But right now, it is a lot of faith to put in to trading algorithms to have them throw money around for you when things can change at the drop of a hat that would be hard for us to predict, with access to all the news etc, let alone for a bot that does TA. Probably just a matter of time though, I wonder what the market will look like then.

[BILGPS]

Artificial intelligence and machine is good in the modern time but trading and investment Through machine i think it will not good because all the machines are programmed and it is not possible for them to make decision in critical times So i think the trading  and investment are good if it is deal by a person personally because the judgement of human being are more stronger than machines and artificial intelligence.

[googs84]

Since technical analysis focuses on volume and price analysis, it seems natural that ML and AI can help here. AI can learn from the patterns used here, and it can develop success algorithms that can change from time to time depending on the situation.

https://www.finextra.com/blogposting/15067/impact-of-artificial-intelligence-and-machine-learning-on-trading-and-investing

But AI can not read the news mate and neither they can know the politics that s played by the human. It will be very complex idea to generate AI like that and have efficient trading analysis. Trading as we know today is not just about the patterns but it's all about what creates that patterns and how they evolve over the time. In the recent time we have seen huge fluctuations on the decision making and AI may not be self explanatory for that one.

We ourselves get confused many times while trading even we have more data than just the patterns. You really think that patterns can help evaluate us forthcoming trades? I disagree on that one surely.

[LeGaulois]

Artificial intelligence and machine learning are already used since several years by banks for trading. It was just called "algorithms " before "Artificial intelligence" becomes a popular trend. With the years it's now more sophisticated. Banks spend a lot of money to develop some and then use it for "hight trading frequency (HTF). IBM created a GNU/Linux using several algorithms (Linux One, I think it's the name)

[Jeffdu3300]

Since technical analysis focuses on volume and price analysis, it seems natural that ML and AI can help here. AI can learn from the patterns used here, and it can develop success algorithms that can change from time to time depending on the situation.

https://www.finextra.com/blogposting/15067/impact-of-artificial-intelligence-and-machine-learning-on-trading-and-investing

I heard this story quite sometimes that big company's managing funds are already use this kind of technology. But as of the moment I think they still perfecting the technology adding the qualitative data in the machine. And if this will happen the success rate will surely increase by tenfold.

On the other side, even they improve these tools and use it commercially, I have doubt that no company will disclose that they use this. Because if they do that I will guard whatever trade they make.

[wuvdoll]

that is true but you are forgetting about a very important thing, you are posting this on a bitcoin forum and trading extends to also altcoins. in these markets technical analysis, pattern studies, etc. are not working really. generally speaking these are not accurate to begin with and when you come in crypto market you see that their efficiency drops drastically to a point that all of it becomes useless in most case scenarios.

Yeah, and most times, trading the market even with TA is still somehow like trying to make some decisions in a very tight condition and one of the reasons why no one can joke with stop loss in the situations of the crypto market. In that case, having an AI algorithm that will use only patterns or whatsoever to detect the condition of the market and make quality decisions with respect to that is somehow too much to take in at once, probably when we start seeing the reality of it, but for now, easier said than done.

[johnlaw747]

AI will help trading and investing check aix.trade and see what they're bringing to crypto and financial space. If everything goes as they r claiming trading will be so much better

[Daimon88]

Since technical analysis focuses on volume and price analysis, it seems natural that ML and AI can help here. AI can learn from the patterns used here, and it can develop success algorithms that can change from time to time depending on the situation.

https://www.finextra.com/blogposting/15067/impact-of-artificial-intelligence-and-machine-learning-on-trading-and-investing

I am really trying to see how Artificial intelligence can play out in such a complex market as this. Sure, things are changing and the possibilities of having some development to aid trading is gradually becoming something to look forward to, but I believe the hype is becoming too much and from experience, it would be better to just see how it ends up working than to keep expecting too much from this.

[damberg]

Since technical analysis focuses on volume and price analysis, it seems natural that ML and AI can help here. AI can learn from the patterns used here, and it can develop success algorithms that can change from time to time depending on the situation.

https://www.finextra.com/blogposting/15067/impact-of-artificial-intelligence-and-machine-learning-on-trading-and-investing

I have seen machine learning algorithms in action, and their results generally beat 95% of human traders. Of course there are still people who can find so called alpha in markets such as stocks, commodities, options etc. I think it will take a few years until algorithms establish themselves in cryptotrading environment .. while we, human traders, make some good profits.