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The question of whether to or not use AI in your trading.
Členem od Sep 24, 2020
28 příspěvků
Dec 21, 2023 at 12:13
Členem od Sep 24, 2020
28 příspěvků
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So I cane across an article that went -
I recently read an article talking about a hypothetical AI trading system that could consistently beat the stock market and I couldn’t help to ask myself: would it really work???
Introducing AI into stock market predictions has divided traders into two: the enthusiastic and the skeptical.
Warren Buffet would probably laugh at it and keep doing it the old fashioned way, but I’m sure other traders would be willing to try it at least once.
I mean, let’s think about it. Most traders in the stock market experience losses because of the emotional side of trading. So a machine that has amazing pattern recognition, trend analysis and with no emotions to affect the decision-making process sounds pretty great, right?
On the other hand, the human touch in financial decisions can't be replaced by machines! It is true that AI can process infinite data, but it lacks the human understanding that traders bring to the table. Intuition, emotional intelligence, gut instincts, and market sentiment are aspects so uniquely human that are hard for AI to copy.
I think it’s important that we embrace the potential of AI in stock market predictions, but also see them as valuable tools rather than magic crystal balls.
What do you think? Would you try investing through AI?
So based on experience and research I say, -
Sure, interesting topic. I recon I'd be more in the Buffet camp here, for many reasons, experience, research etc over the years. Ya ask me, sure, I was considering adopting AI, programmin a bot to do wha I'm doing after training myself right? And maybe I will some day. But for now, I'm in the camp of not joining the race to 0
You'll buy a machine to use it's really cool algos to predict the market, and buy, then there's another bot out there operating to predict your machine, what's buying b4 your machine buys, and sells it back to yours at a higher price, and a bot predicting the bot predicting your bot.
Algos are performing 15-20k calculations a sec, you can do 1, so you've no chance, over a short timeframe, unless you gonna be the best bot programmer on the planet. All this has reduced the implied volatility on any given instrument and go back, look at it from 15/20 back, Things just not as volatile As before then. This I noticed myself in my own trading.
Everything in a short space of time, 1 sec up to a day, so you've no chance, this is the race to 0. But what they don't do is over the longer term, so if you want to beat them, you must go where the opportunities lie, longer term, 2/3 months and beyond.
Coincidentally, system I came up with, seems to deal with this AI problem remarkably well believe it or no. But what I may do in the near future will be open another trading account and using the AI, and find out which 1 trumps the other. Would be a interesting exercise.
Any thoughts on this topic from anybody out there already using AI, or thinking o getting into it?
So I cane across an article that went -
I recently read an article talking about a hypothetical AI trading system that could consistently beat the stock market and I couldn’t help to ask myself: would it really work???
Introducing AI into stock market predictions has divided traders into two: the enthusiastic and the skeptical.
Warren Buffet would probably laugh at it and keep doing it the old fashioned way, but I’m sure other traders would be willing to try it at least once.
I mean, let’s think about it. Most traders in the stock market experience losses because of the emotional side of trading. So a machine that has amazing pattern recognition, trend analysis and with no emotions to affect the decision-making process sounds pretty great, right?
On the other hand, the human touch in financial decisions can't be replaced by machines! It is true that AI can process infinite data, but it lacks the human understanding that traders bring to the table. Intuition, emotional intelligence, gut instincts, and market sentiment are aspects so uniquely human that are hard for AI to copy.
I think it’s important that we embrace the potential of AI in stock market predictions, but also see them as valuable tools rather than magic crystal balls.
What do you think? Would you try investing through AI?
So based on experience and research I say, -
Sure, interesting topic. I recon I'd be more in the Buffet camp here, for many reasons, experience, research etc over the years. Ya ask me, sure, I was considering adopting AI, programmin a bot to do wha I'm doing after training myself right? And maybe I will some day. But for now, I'm in the camp of not joining the race to 0
You'll buy a machine to use it's really cool algos to predict the market, and buy, then there's another bot out there operating to predict your machine, what's buying b4 your machine buys, and sells it back to yours at a higher price, and a bot predicting the bot predicting your bot.
Algos are performing 15-20k calculations a sec, you can do 1, so you've no chance, over a short timeframe, unless you gonna be the best bot programmer on the planet. All this has reduced the implied volatility on any given instrument and go back, look at it from 15/20 back, Things just not as volatile As before then. This I noticed myself in my own trading.
Everything in a short space of time, 1 sec up to a day, so you've no chance, this is the race to 0. But what they don't do is over the longer term, so if you want to beat them, you must go where the opportunities lie, longer term, 2/3 months and beyond.
Coincidentally, system I came up with, seems to deal with this AI problem remarkably well believe it or no. But what I may do in the near future will be open another trading account and using the AI, and find out which 1 trumps the other. Would be a interesting exercise.
Any thoughts on this topic from anybody out there already using AI, or thinking o getting into it?
1, Just do it. 2, Don't give up
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