AI In Trading And How It’s Changing The Industry

With technology advancing faster than ever, artificial intelligence is certainly starting to impact our day to day lives in a significant way.

But one industry seems to be benefiting a lot from the development of artificial intelligence. Slowly, but surely the technology is getting into more areas of the trading industry. It doesn’t matter if you’re trading in crypto and simply converting USD to BTC, or investing in stocks, there’s a probability you’re using technology backed by artificial intelligence.

So, with so much going on in the trading industry, we asked ourselves “Why don’t we research this further?” and see how much and in what ways does artificial intelligence exactly impacts it. And there are some pretty interesting things currently going on, so let’s jump into it.

Artificial Intelligence Can Help Traders Pinpoint Patterns

There’s one thing sure in trading or Foreign Exchange Trading – people, in general, don’t have much of an idea if they’ll surely make money or lose money. And that’s how the industry works. If you know you’ll make money for sure, it’s kind of illegal to do insider trading.

But, like anything in trading, really good traders know how to recognize different patterns and now it seems that there are startups that help traders recognize those complicated patters both more easily and in an earlier state.

The technology currently uses a mixture of high processing power and machine learning. It throws millions of simulations at the computers and let it learn and do its magic. Currently this helps companies with recognizing and evaluating risky investments.

But That Is Not All. New Technologies Help With The Creation Of Trading Strategies

There is one thing for sure. Without a strategy and plan in mind, it’s very hard to make millions while trading (or in any industry to be exact). But as markets can’t be one hundred percent predicted, it’s only normal for those strategies to have an amount of speculation in them.

And while that’s all fine, in some instances it would be best if you are 100% sure of what you’re doing. That’s why there are startups that are doubling down on creating engines that track the market and observe trades to try and create potential scenarios to help professionals develop strategies. This, in turn, can make the markets more stable and predict drops before they happen.

But They Are Also Developing Order Engines

Truth is, most traders know that just because they have been able to catch an opportunity, it doesn’t mean that they aren’t missing on ten other. But as we’re just humans, and we can’t work 24/7, companies are developing and building some pretty reliable order engines.

These engines are using machine learning to analyze real-life tradings and based on that knowledge it makes operational actions.

The truth is each industry is changing rapidly, and day trading, stock exchange, crypto trading, and as a whole the financial industry isn’t behind on adopting the latest technologies and getting the most out of them.

Who knows where we’ll be in the next ten years! We’d love to hear your predictions