AI Trading Systems Will Impact Wall Street: Here’s How

by Guest Author on May 24, 2019

in Guest Posts

Algorithmic Intelligent Trading

By repeatedly depicting intelligent bots taking over the world, decades of sci-fi films have equated artificial intelligence or AI with death and destruction. Au contraire, the AI revolution currently taking place in the real world features no such coups. AI is slowly making its presence felt by permeating into all kinds of decision-making processes that were once exclusive to humans. Truth be told, the applications of AI are so vast and ubiquitous that it’s hard for us to notice how much of our lives are being impacted by algorithms.

Well-built algorithms are the spine of AI technologies. Today, ‘algorithm’ is a word we hear more often than we did in the past. This is because more and more people are finding out that if computers are given a set of simple instructions, they can learn on their own. A set of mathematical instructions are all that algorithms really are. A more established definition of algorithm would be a ‘step-by-step process’ of solving a problem.

Truth be told: algorithms are fast becoming an inescapable part of our lives. There are several uses of algorithms today including data processing, calculations, and automated reasoning. Here, I will stress on automated reasoning as it can play a critical role in accurately predicting the results of financial markets.

How Algorithmic Intelligence (A.I) Trading Can be Your Ticket to a Financially Secure Future

Want to improve your financial situation? Consider predicting financial markets. Do this even if you don’t have a financial background.

You must be wondering “Wait, isn’t that too much of a risk?”

It would be if we didn’t have automated stock trading software.

Predicting the performance of the stock market is incredibly hard. Regardless of your experience in trading stocks, you can never guarantee accurate predictions. The behavior of the stock market is driven largely by trading psychology or the emotions and actions of people trading in the market. This can make stock market prices highly volatile, preventing you from predicting the stock market with a high degree of accuracy.

However, automated stock trading software enabled by intelligent algorithms is promising to change this. The algorithmic intelligence (A.I.) software can help you in making impeccably accurate predictions by unearthing patterns and insights that were not possible with traditional trading software.

Let’s be honest: there are times when even the most knowledgeable stock trader in the world will predict the stock market inaccurately. This trader is human after all and we all know that people are prone to errors. The only way to improve our success rate in accurately predicting the stock market is by using an intelligent trading app.

Over the years, many stock traders have sought advice from me for improving their success in stock market trading. A consistent trend that I have noticed with most of these people is that they buy or sell a stock just because the transaction felt right to them at the time. No surprise here: 9 out of 10 times this “tactic” leads to failure. Gut-based trading only resulted in success when someone’s lucky stars were shining the brightest.

The point is that if you trade the stock market without an intelligent trading app, you will fail more times than succeed. Acquired stock market knowledge and your gut feeling can work to your advantage but only occasionally. On the other hand, algorithmic intelligence (A.I) software takes the human element out of the investment equation. Instead, it buys, sells, and holds stocks using proven proprietary algorithmic intelligence.

While you may come across a lot a trading software that is marketed as an algorithmic intelligence trading software, you need to be wary of what you get. A lot of the ‘A.I’ trading software today is nothing more than just a set of complicated instructions and action workflows. To find a trading software that’s truly powered by algorithmic intelligent, look for the ability to: learn from past experiences, adapt to market conditions, and make trade decisions accordingly.

The Advantage of A.I Software in Trading the Stock Market

I was recently talking to the people at my company about the future of stock market trading and we all agreed that algorithmic trading will have a key role in it. We came to this conclusion because an automated, intelligent trading app is faster, more accurate, and more cost-effective than traditional trading software.

According to the senior economist for Ameriprise Financial Russel Prince, a major advantage of intelligent software in trading is that they eliminate emotions from the process. Since us humans are wired a certain way, completely eliminating emotions from our decisions is virtually impossible. Therefore, our emotions play a role in our stock market investments. Trading influenced by emotions has proven to be counter-productive. When you trade based on your emotions, you get very little return on your investment.

On the other hand, algorithmic intelligence (A.I) is not driven by emotions. It does not have any fear or greed. Instead, it works by automating all aspects of stock market trading, from technical analysis to on-demand trading. This is to make sure that your money is invested in a way that allows you to trade the stock market profitably.

Over the past decade, algorithmic trading has become increasingly popular. At present, algorithmic trading makes up more than 70% of all U.S equity trading. Additionally, the global algorithmic trading market is expected to grow by 10.1% between 2018 and 2026. One of the major reasons for this increased popularity and use of algorithmic trading is the success of A.I. trading software in accurately predicting the stock market. For example, the software recently made an accurate prediction about a negative 13.72% stock market drop. Moreover, it automatically sold positions in the S&P 500 (SPY) to save customer investments.

A growing trend in financial trading worldwide, algorithmic trading can be taken to the next level with intelligent, automated stock trading software. With its automated proprietary technical analysis and on-demand trading execution, algorithmic intelligence (A.I) software fits the bill perfectly. With this intelligent trading app, you can lower your investment risk while growing wealth during profitable times. You can’t ask for more!

Guest article written by: A self-made entrepreneur, Randy Tate built an athletic apparel company that grew to over $5M in revenue. Over the past decade, he has been training employees and business owners on how to market effectively, grow sales, and bring sustainable growth to their companies. Tate has an enviable list of accomplishments to his name including starting a software company that reached over 150,000 users, developing and overseeing the expansion of the Elite Business Education curriculum program, and co-founding iFlip, a SAAS Financial Technology Company empowering individuals to preserve, protect, and grow their wealth through AI investing.

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mithuch May 27, 2019 at 07:50

Amazing detailed explanations! Keep it up.

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