The rise of high-frequency AI bot trading has significantly impacted individual traders who traditionally relied on technical analysis. Let's explore how this transformation affects traders:1. Speed and Competition:- High-frequency trading (HFT), powered by AI algorithms, executes trades in microseconds. This rapid pace has intensified competition in the market.- Milliseconds matter: AI bots can make split-second decisions, leaving traditional traders at a disadvantage.2. Discretionary vs. Systematic Trading:- Discretionary traders rely on intuition and subjective judgment. However, AI-driven systems use objective data analysis, removing human bias.- Systematic trading dominates: AI bots follow predefined rules, optimizing performance without emotional interference.3. Market Dynamics:- Technical analysis limitations: HFTs challenge traditional technical patterns. Sudden price movements driven by AI can defy historical trends.- Adaptability: Traders must balance technical insights with AI-driven shifts.4. Liquidity and Volatility:- Liquidity impact: HFTs enhance overall market liquidity by reducing transaction costs.- Price volatility: Interruptions in HFT can affect liquidity and, to some extent, price stability¹².5. Holistic Approach:- Blend fundamental and technical analysis: AI complements both. While fundamentals provide context, technicals offer precise entry/exit points.- Stay informed: Understand AI-driven changes and adapt strategies accordingly.In summary, AI-driven high-frequency trading reshapes the landscape. Traders must embrace technology, adapt, and seek a balanced approach for success¹².Source: Conversation with Bing, 11/03/2024(1) The Impact of High-Frequency Trading on Modern Securities Markets. https://link.springer.com/article/10.1007/s12599-022-00768-6.(2) The Rise of Robot Trading: AI In The Markets - TD Markets. https://www.tdmarkets.co.za/en/blog/the-rise-of-robot-trading-ai-in-the-markets/.(3) High Frequency Trading in FinTech age: AI with Speed - SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2771153.(4) Exploring the Impact of Trading Automation AI: From Inception to Future. https://gritdaily.com/impact-of-trading-automation-ai/.(5) Revolutionize AI Trading Bots with AutoML-Based Multi ... - Springer. https://link.springer.com/article/10.1007/s42979-023-01941-8.(6) The impact of high-frequency trading on traditional trading bot strategies. https://mineraland.io/the-impact-of-high-frequency-trading-on/.(7) Best AI Tools for High-Frequency Algorithmic Trading - SmartData Collective. https://www.smartdatacollective.com/best-ai-tools-for-high-frequency-algorithmic-trading/.(8) High-Frequency Trading Analysis with Python - Financial APIs Academy. https://eodhd.com/financial-academy/stocks-price-prediction-examples/high-frequency-trading-analysis-with-python/.(9) Mathematics | Free Full-Text | Algorithmic Trading and Financial ... - MDPI. https://www.mdpi.com/2227-7390/10/18/3302.
Charts, page-485
- There are more pages in this discussion • 139 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add BOE (ASX) to my watchlist
(20min delay)
|
|||||
Last
$4.70 |
Change
-0.060(1.26%) |
Mkt cap ! $1.922B |
Open | High | Low | Value | Volume |
$4.75 | $4.84 | $4.59 | $48.37M | 10.27M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
8 | 66628 | $4.69 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$4.71 | 10000 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 20 | 5.070 |
1 | 115 | 4.930 |
2 | 3500 | 4.850 |
1 | 3173 | 4.820 |
1 | 250 | 4.750 |
Price($) | Vol. | No. |
---|---|---|
4.330 | 21 | 1 |
4.350 | 10244 | 1 |
4.470 | 2000 | 1 |
4.500 | 804 | 1 |
4.560 | 435 | 1 |
Last trade - 16.10pm 29/05/2024 (20 minute delay) ? |
|
|||||
Last
$4.71 |
  |
Change
-0.060 ( 1.15 %) |
|||
Open | High | Low | Volume | ||
$4.76 | $4.84 | $4.60 | 3687833 | ||
Last updated 15.59pm 29/05/2024 ? |
Featured News
BOE (ASX) Chart |
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
Previous Video
Next Video
SPONSORED BY The Market Online