AutoTrading - What is it?
Autotrading is the use of AI for trading stocks or shares.
It is important to note that as of March 2021 we have seen no evidence that trading software available to the public has anything like the intelligence required to trade as successfully as you can with just a little attention to the finance press and news.
Most AI robot traders are very simple learning programmes that do not read the news and work by watching the patterns recorded by the numbers on FTSE or NYSE. This is a flawed method in our opinion as it has no understanding of the motivation of the market influences.
Cryptocurrencies are a single price commodity and not a suitable commodity for AI in our opinion as the price is subject to rapid change and the currencies tend to follow the same pattern and so trading between them is often fairly pointless.
An algorithm is not a suitable tactic for trading as the rules are not that simple. Any algorithm that has worked previously will have affected the headspace of vulnerable traders and they will not fall for the same pattern twice.
In order to understand trading you need to understand the market which is made of people.
An AI could theoretically understand financial patterns in a way that people cannot and could conceivably learn to trade in a way that would surpass humans, but this would not be a product andyne would sensibly try and sell to others. There would be much more profit in running it for themselves.
As quantum supercomputing evolved it is possible that trading AIs will be born but this would be either in the hands of those that control the vast majority of shares or it would result in a redistribution of power across the world- money is power-.
Any person claiming that they are sharing this technology because they've already made enough and want to share it with a limited number of people on a beta test is a scammer.
Anyone who claims that they discovered code that predicts the stock market is a scammer.
Anyone offering autotrading bots that will trade for you for a deposit of $250 is a scammer.