With the advancement of technology, it is now possible to automate many tasks that previously required significant human time and effort, such as analyzing, collating information, deriving insights, and understanding historical trends to predict future statuses or prices. AI and ML, in particular, play a pivotal role in driving this progress, helping us move forward by leaps and bounds. Similarly, trading is also not left out from this impact of transformation with technology.
While humans remain a part of the equation, artificial intelligence has taken on an increasingly significant role in trading. New AI and ML algorithms are constantly being developed, with a range of strategies in use—some highly advanced, while others are still evolving. One thing is clear: humans are focused on leveraging these technologies to maximize profitability through automated trading. However, there are also downsides and risks associated with relying on AI and ML in trading.
The above sources collectively show both the potential and limits of AI in trading. While some researchers highlight AI’s efficiency and adaptability, others point out the challenges related to technology requirements and unpredictable markets. This range of perspectives helps create a balanced view, showing that while AI can improve trading, it might not fully replace human involvement, especially under uncertain conditions.