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.