As some of you probably already know, one of my main trading interests is technology evolution. Especially related to alterative data and AI. This is fascinating and very much used in our field.
There is no doubt that AI solutions will continue to mature. It will become more efficient and faster. At the beginning will surely support us traders in various ways, providing knowledge, tips, automating tasks and processes.
This will be the time when the best results will be achieved by mixed teams (I would call them hybrid) composed of traders and AI.
An article on this topic is already in preparation, I will show in it the right direction of development, the next step of AI solutions adoption by funds. So far it is not well understood and I want to change that.
Ultimately, Super AI will be created, which will collect data on its own, analyze them and make investment decisions. I will anticipate a possible question - the AI I have in mind will work like an excellent trader, the best of the best in the field.
And the cost (variable) of creating and testing the new system will be equal to the price of electricity used by the computer.
The time to build a valuable strategy for using AI in funds is today. And the next important step is not to bet on a “standalone AI machine” (as many fund managers believe) but on a hybrid team of well-prepared and trained humans (including necessarily traders) and evolving AI.
It is happening already. Personally, I am sure that the days of individual trading as we know it are coming to an end. How do you think how much longer individual traders will be able to trade in the market and be successful? This is a very important question because it affects us directly.
Hi,
Interesting position. Did you read Superforecasting by Philip Tetlock and Dan Gardner? As someone who has had (a very little) exposure to AI, in particular in the robotic process automation area, I can attest to the experience of many, that expected results and actual results could mean the difference between profit and ruination. Personally, I think we are a lot further away from practical AI than many would have us think.
Who created the AI, anyway? Other AIs, or Humans? We also create other humans too, something I very much doubt will be within the capabilities of AI for a good time yet to come
What choice will individual retail traders have if this does happen? I wonder if there are new markets that will emerge that won’t allow AI use - if that’s even possible.
I assume there will be an initial period first, where few will have access to such tools (the biggest players). And this is already happening. Then retail trading will start to disappear and a new market will appear in its place - collective investing (you pay some money to a fund and it invests on your behalf. This fund will have modern tools and will be able to compete with others, but it will need capital). And then… the future seems very interesting.
A lot of people use automated forex trading robots to execute trades on the currency market. These robots are AI and are profitable. They use complex mathematical models and strategies to analyse the currency markets. They identify trading opportunities and execute trades accordingly. This is an effective way for traders to make money. There are a lot of forex robots and software on the Internet, but not all of them are reliable. Before you start using one, you should check its reputation and reliability first.