How do you think AI and machine learning will impact the future of trading?

[shanhaigamefi]

I wanted to start a discussion on how these technologies are transforming our trading strategies.

Recently, there has been significant progress in using advanced machine learning models like neural networks and genetic algorithms to predict market movements and mitigate trading risks. For instance, a study from the University of Barcelona demonstrated that combining these technologies with volatility models can substantially enhance the accuracy of market predictions and reduce risks for traders​ (Tech Xplore)​.

[EarnOnVictor]

I wanted to outrightly condemn this idea because, just like bots that have been developed and upgraded for years, they are still not able to beat the market. Some will fail you almost immediately, while some will fail you later and others will just be earning and losing to the point that there will not be significant profits in the long run. For this, I am discouraged about these of bots.

Also, with AIs, judging by the ones I know now, they always shy away from giving market analysis and signals, they will only tell you how you can go about it. However, with the university experiment on a neural note, I think further progress may be possible. This will still not be perfect but I am certain that there will be a significant improvement compared to the bots garbagges that fill the internet.

Still, a good trader's style must be observed for this to be possible.

[pakhitheboss]

For instance, a study from the University of Barcelona demonstrated that combining these technologies with volatility models can substantially enhance the accuracy of market predictions and reduce risks for traders​ (Tech Xplore)​.

Such studies are done in a conditional environment and half of the time these studies do not work in real-world scenarios. As per my understanding as a nontechnical individual, these bots and AIs are developed by humans. Humans do not possess the capability to design, predict, or change the future which is why we see movies based on time travel. I guess we will not see any such software that will hamper the future of trading even if they learn to adapt or learn with experience they will still commit errors causing loss to the trader. It is only the human mind that can learn from mistakes that can help a trader with the gained experience.

[Aanuoluwatofunmi]

I wanted to start a discussion on how these technologies are transforming our trading strategies.

All this may not effectively work out well for trading because these AI machines and softwares you're seing online were built by someone and you can't expect them to have the same kind of performance as to human brains on what decision they can make to trade, trading is profitable but if many have seen the use of trading bot more effective than the human efforts and skills on trade, everyone would have been using bot in making their trades.

[AVE5]

I wanted to start a discussion on how these technologies are transforming our trading strategies.

Recently, there has been significant progress in using advanced machine learning models like neural networks and genetic algorithms to predict market movements and mitigate trading risks. For instance, a study from the University of Barcelona demonstrated that combining these technologies with volatility models can substantially enhance the accuracy of market predictions and reduce risks for traders​ (Tech Xplore)​.

There could be some terms of advantages of using AI on trades but the machine would only operate based on specified instructions of when to buy and when to sell also on specific value.
It though does maintains your targets but doesn't literally mean that you're staying on a perfect trade rather it gives you the privilege to ease your stress and take yourself some breaks instead on staying at the market lines at all course of your active trading.
Contrarily, do we consider we can ject out of the market due to FOMO and then misses the rest of the current profiting trends at a current market rise if we may act too quick to sell at at little given profit opportunities? Because an AI might decide to pause trade due to FOMO instructed program after accounting certain amount of profits while the market is still uprising.

[electronicash]

i'm sure it's not always perfect accuracy. there is no such thing when there are unpredictable things to happen such as manipulations.

AIs somehow work since they are programmed to do something when they foresee where the market goes while analyzing six ways. but what i could suggest if you are to use AI is that. just use this kind of AI in a demo trading account and then execute the trades yourself in the real account. doing this will only give the AI a limited role in your trading activity and you will not rely upon it in trading.

[el kaka22]

Future of trading will not be impacted by machine learning all that much. You can put ALL the historical data into an "AI" now, and it will not make it work or change anything, it will not be able to predict the future. That is something not possible, only due to the fact that market is not predictable, what has happened ten times, may not happen an eleventh time, so it is not going to be that easy, we could end up with some stuff that will take a while.

This is why I honestly believe that it is not going to be easy at all, we could end up with some issues. We should probably consider the fact that we are going to end up with some issues that will take some time, and because of that we should be letting humans keep on trading instead.

[nelson4lov]

I have given it some thoughts ever since ChatGPT was first announced in November 2022 and came to the conclusion that if AI gets to impact the markets — that is anybody can just use any LLM and AI to predict market movements and if it indeed works, then everyone will be rich. The fact that we are a not all rich yet means that AI don't currently have any impact on the markets yet. At best, AI can only provide some market insights which would most likely not work because the market doesn't primarily on analysis but emotions of everyone in the market. That's why it's mostly a self filling prophecy. AI can't know everyone's emotions all at same time.

[Stepstowealth]

I wanted to start a discussion on how these technologies are transforming our trading strategies.

Technology is making things easier but human learning still needs to continue because depending on machine alone and robots may improve trading efficiency but will not guarantee profits. There are traders who are already depending on robots and asking question on the best robots that they could use in trading, this also means that artificial intelligence and use of machine in trading will also make some traders in the future to become lazy.

[shinratensei_]

does that study already have extensive data about the accuracy of the AI for the purpose of trading?

honestly so far with the emergence of the use of chatGPT and the like integrated in many exchanges such as bybit that's tailored to be used for predicting market and reading technical analysis, I just personally never find them to be that accurate and useful, most of the time it's just basic analysis toward the market based on available data and that's it.

the market as far as I know is abstract and heavily affected by news that could change market sentiment, an AI that could pull news real time and digest it to make informed decision afterward will be better in mitigating trading risk IMO.

[Dr.Bitcoin_Strange]

There's this AI and robotics movie. In the movie, those AI were programmed with neural networks, but there was an external device that humans had to plug in their heads so that the AI could synchronize with their brains in order to be more smart. That's to say, the AI is combining its data with that of a real human that they are synchronized with to provide a great result quickly. 

AI companies are improving greatly, and maybe in the far future, we will be having the AI race; it will then be humans against AI (and vice versa). 

For all my years of trading and from the experiences I have gathered, I know that humans have not been able to predict the price movement of crypto assets 100% correctly. There are already so many trading tools, such as the variety of indicators we have, that help traders and market analysts monitor and predict the price direction of cryptocurrencies, but those indicators don't accurately tell you the price that a coin will be at the next minute. 

Through the indicators, it is the trader that can then make their prediction based on the market direction that is known through the indicator. 

That's why I will still disagree that even AIs cannot be so certain about the price movement of a coin. They will definitely use the trading tools to also make an analysis of the upcoming price of a crypto and they can be wrong too.

[Nitrowinner]

a lot of friends use ai robots for trading in crypto with different platforms but end of day as I see from results will be negative in cashier...
then for now stay away.. 

[mirakal]

I wanted to start a discussion on how these technologies are transforming our trading strategies.

All this may not effectively work out well for trading because these AI machines and softwares you're seing online were built by someone and you can't expect them to have the same kind of performance as to human brains on what decision they can make to trade, trading is profitable but if many have seen the use of trading bot more effective than the human efforts and skills on trade, everyone would have been using bot in making their trades.

The problem is, majority of those who resort in trading using bots are now at loss, so we can't expect that the rest of the traders will also be trading using bots. However, if this AI will be more developed and improved in the near future, maybe I will be more open to the idea that this will bring a lot of trading success and profits to all traders. The question is, when it's going to happen?

[GreatArkansas]

a lot of friends use ai robots for trading in crypto with different platforms but end of day as I see from results will be negative in cashier...
then for now stay away.. 

There is still a lot of room for growth in A.I. right now especially using it in trading.
For me, nothing is good about using A.I. on trading, it is complicated but for some for sure it is already giving them good profits, but then again it's not 100% guaranteed.

[jcojci]

Yes, AI will effect to many things including trading because human will trying to figure out how to make many things simple as they wants. They will use AI and machine learning to help them explore many things so that will bring knowledge for many people and benefits them. We now already see that AI and machine learning is like a new trend which boom just like that and we see many advertisement about AI that saying can helps our life and simplify it. Our life will be helped by AI and machine learning so when it applies to trading, we can get more data from AI that will be useful for us. But that will only useful for people who can learn AI properly.

[slaman29]

For instance, a study from the University of Barcelona demonstrated that combining these technologies with volatility models can substantially enhance the accuracy of market predictions and reduce risks for traders​ (Tech Xplore)​.

Can. The keyword is can, not guaranteed.

I was trading since early 2000s and even at the time people said algorithms can do it. Then around 2010 the next big thing was crowd intelligence, which even in 2017 you saw 10s of ICOs on altcoins using crowd intelligence plus AI to ... do market predictions. You can even look on this forum altcoins and see similar projects.

Guess what, did they make money? Did they reduce risks for traders? I bet you it made MORE people lose MORE.

You know people always fall for it, don't be the statistic.

[JeffBrad12]

a lot of friends use ai robots for trading in crypto with different platforms but end of day as I see from results will be negative in cashier...
then for now stay away.. 

So many of AI robot trading right now are just gimmick little to no AI involved in the decision making of the bot.
it's all precoded algorithm to trade on the market but obviously rarely leverage AI, so they are not really true AI robot.
but regardless even if they are true, the AI will probably not gonna excel in the place where speculation and upcoming rumour and sentiment is what determine the outcome.
AI just work based on pre existing data fed to them, they can't judge market based on data that doesn't exist for example trump acknowledge BTC.

so even if AI trading bot exist I don't believe they are effective until proven otherwise.

[yudi09]

Recently, there has been significant progress in using advanced machine learning models like neural networks and genetic algorithms to predict market movements and mitigate trading risks. For instance, a study from the University of Barcelona demonstrated that combining these technologies with volatility models can substantially enhance the accuracy of market predictions and reduce risks for traders​ (Tech Xplore)​.

A creation has advantages and disadvantages. AI technology is also the same, in that there are advantages if it is used in a place like the one you mean. Here I am not directly saying that using AI technology for a network system is not good or bad for predicting market movements. It could be useful for certain people, but I personally am not too interested in using it to find out market price movements because the crypto market is difficult to predict.

[nelson4lov]

There's one thing that distinguishes humans and AIs amd that's the fact that humans actually have emotions and can take very spontaneous decisions based on a specific situation or a change in a setting. AI can't, at least not yet. AIs can make decisions on their own yet and a typical trading AI will mainly act on predefined algorithms and trigger events. If AI can predict markets, we'd already have so many new millionaires here and there but the fact that we don't is still proof that AI isn't there yet.

[bitgolden]

I honestly think that the situation right now is more about how AI could learn from previous trades.

The idea is that we are going to see an AI that could make its own patters, you will feed it the good trades that made you profit, and you will feed it bad trades that made you a loss, and you will show it which one is good and which one is bad. Then, you will let it see all the charts and indicators and everything, and it will check what happened right before the good ones and what happened right before the bad ones.

If anyone can make an AI see that, and understand it, then it will end up trading accordingly, and whenever it sees a common pattern among the good trades that made you profit, and whenever it sees that pattern happen again, it will trade for you and make you a profit.

Now we do not know if this will happen or not, we are just guessing that it is a possibility, but millions of people using something like this could be an issue as well.

This is why it is going to be a trouble for everyone to have a profit, we need to figure out an idea how that would happen too, if millions of trades happens just because people trust their AI, eventually some must be too slow and make a loss.