How will AI help democratise intelligence in algorithmic trading? Here are 5 ways

  • May 04, 2024 06:33 am
  • 2024-05-04 06:33:25
AI in trading sectors. Image source: gettyimages
AI in trading sectors. Image source: gettyimages

AI's part in computerized trading has made it much easier for all traders, and it is also lessening the requirement for human involvement as well. Algorithms generally boosted by AI make trading more accurate and efficient.

Evolution of intelligence:

Intelligence has changed a lot over time. It started with natural processes on Earth, then humans evolved, and now there's artificial intelligence (AI).

AI has become really important recently because of the huge amount of data available on the Internet over the last 30 years.

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Algorithmic trading:

AI can analyze this data and act like a human, and soon it might even be better than us. In money stuff, AI is changing how people trade.

Algorithmic trading, or algo trading, will use AI to do trades automatically and decide what and how to trade.

AI's Role in making trading accessible:

Open AI sources like ChatGPT and AI models like Llama 3 are now accessible to anyone with an internet connection for a small cost.

This means traders can use advanced algorithms that were once only for big institutions.

Automation in trading:

Now, traders can automate their trades without knowing how to code, thanks to AI. They just need to use their logic to set up trades based on market conditions.

This means people don't have to do trades anymore, and lots of trades can happen all together.

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Future of research with AI:

Later on, AI might change how people research for trading.  AI-powered algorithms can reduce trading errors caused by emotions and quick decisions.

AI is changing the role of humans in trading. Algo trading is taking over a lot of trading done by people.  AI and algo trading have a bright future ahead.

We recommend investors to approach with experts before investing in any companies.