The Future of Trading with AI Agents
We are living in interesting times. The win of Doland Trump in the US Elections will be the key factor for a shift from anti-crypto to crypto friendly regulations in the US. Bitcoin has reached new ATH while BTC and ETH ETFs are now a reality and a proof that these two assets have now reached institutional level approval and adoption.
The leading Crypto Exchanges will become the Banks of the future and their client databases will be shared with the Regulators and the Tax Authorities. The future of Crypto is centralized since it is now a part of the traditional economy. Stablecoins will be the main shaft of the economy with cross border transactions taking place in seconds while Crypto ATMs will be in every corner. US, UAE and Asia will be the leaders in blockchain adoption while Europe will become a ringfenced graveyard for innovation and technology.
The rise of artificial intelligence is now rapidly closing the gap between Big Software Enterprises and Small Start Ups. This new reality is going to change the way we trade as well.
Currently a Trader can either trade manually or try to build a trading bot. This can be done through platforms such as Trading View and MetaTrader5. Crypto Exchanges and Trading Bots Platforms also offer tools such as DCA Bots or Grid Bots so their Clients can quickly set up their own Bots.
Artificial Intelligence also offers the ability to write code for trading with Chat GTP o1 preview version being a bright example. But are these tools and options enough to guarantee a result? The answer is not exactly.
Till now the process of learning how to trade would include a lot of reading, experimenting, acquisition of trade tutoring services and most importantly learning through failure. This is a situation that a lot of Traders are going through even today.
Furthermore a lot of Crypto Exchanges and Trading Platforms remain incompatible or even worse alerts will not fire in time or even not at all.
Retail Traders remain the weak link because they have a small capital and must get exposed to high leverage while the Whales know where to push the price in order to liquidate them. This happens in cycles of 4 to 8 weeks where the "Positive" News will be followed by a rapid move of the prices against the direction most traders expect.
All of the above are now changing and here is how it is happening.
In the near future a human trader will be as good as his AI Agent is. People will assign their wealth management to their AI Wealth Managers. This will take place in trading as well. An AI Agent will be loaded with trading knowledge and then will be able to design and execute trading strategies according to the investment profile of its owner.
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The key element for a successful AI Trading Agent will be the core code that these Agents will use to analyze the markets and design their trading strategies.
The users will be able to download an app, connect their exchange accounts or FX Broker accounts and then assign to the AI Agent the creation and back test of a trading strategy.
The future of trading is fully automated and Companies are going to compete in order to build the best Trading AI Agents and create huge libraries of technical analysis tools that the AI will use. The one million dollar question is which technical analysis tools are going to make the difference?
We will start realizing the impact of Artificial Intelligence in Trading in the coming years when most of the traditional trading services will decline and people will not pay for any human services around trading anymore.
As i mentioned in the begging we are living in very interesting times and i am eager to see what comes next for the Trading Industry.
Let's keep in touch and i hope you enjoyed this article and no it is not written by AI!!