Pros and Cons of AI Trading Software


—TechRound does not recommend or endorse any financial, investment, gambling or trading advice or practices. All articles are purely informational—

Trading doesn’t work today the way it used to several years ago. You don’t have to make calls, talk to an elusive broker, or be physically present in the market to trade assets anymore. Instead, the modern technological revolution has allowed you to trade from the comfort of your home. What’s even more interesting is the fact that you can now take advantage of AI trading; trading with the help of artificial intelligence.

Do away with emotions that keep people frozen in their tracks and miss great opportunities. These AI trading platforms can trade on your behalf and offer you an array of features that add to what trading platforms have traditionally offered. Let’s know more about AI trading platforms.


The Concept of AI Trading


You may think this type of trading constitutes automated trading, but the concept involves many other ideas. Yes, you can set certain conditions and filters so the platform executes a trade on your behalf as soon as those conditions are met. However, AI trading also means you being able to use the platform for identifying the best trading opportunities by sifting through huge loads of market data. In other words, you aren’t manually required to do any qualitative or quantitative analysis on your own.

If you’re using an AI trading platform, you may get signals that have been generated by computers based on analysis of several GBs of data. In other words, trading signals can also be AI generated.


What AI Trading Platforms Can Offer


Firstly, you can expect all the features that you usually find on traditional trading platforms. Using leverages, understanding margins and margin calls, etc. is still involved. You can set conditions for your platform to trade on your behalf so it is scanning the market and capturing opportunities even when you’re not actively using the platform.

One of the things about AI trading software and platforms is that they allow you to trade in a variety of markets, but crypto remains one of the most favorite assets for youngsters to trade. The advantage for new traders is that they can join the platform with either a very small deposit or no deposit at all.

Moreover, some platforms have set their minimum trading sizes to $1, which means they are trying to make AI trading more accessible to new users. Keep in mind that the same platforms will usually allow you to trade manually as well. You can use AI for scanning the markets and analysing the data for opportunities, and trade manually to keep control in your hands.

A great feature offered by these platforms is backtesting, which means you can create a strategy, take data from the past, apply your strategy on that data to see if it really works the way you want it to. Similarly, you can take advantage of simulated trading where you can trade without spending real money in a real trading environment.


The Cons of Using AI Trading Platforms


It wouldn’t be wrong to say that you need to have some level of knowledge to use these platforms, and in some cases, you may even have to do a bit of coding. You can’t just log into the platform and expect profits to start coming.

Furthermore, the loss of control is a real challenge that many traders face when the AI trading bot trades on their behalf. You’re making money but you might not be too keen to realize that you didn’t know what worked in your favor and what didn’t.

Last but not least, AI trading can have its downsides when it comes to predicting the future based on historical data—it can only be so accurate.

AI trading is a great new concept and you’ll find quite a few platforms out there with great features, small to no deposit requirements, and ridiculously small trading sizes. However, the one thing you want to avoid is believing that AI trading can make you millions with the click of a button.

—TechRound does not recommend or endorse any financial, investment, gambling or trading advice or practices. All articles are purely informational—