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