In the ever-evolving world of trading, achieving an ‘edge’ holds the key. This edge can take many forms, from distinct market knowledge to a honed ability to decode price chart patterns. Gaining an upper hand is an uphill task where a considerable 80% of traders are explored to lose money. With the introduction of AI in crypto markets, this quandary escalates. AI integration might cause a major shuffle, undermining conventional trading wisdom. The blockchain consultant Sheraz Ahmed is of the opinion that neglecting AI will render day traders obsolete.
The rise of AI trading is arguably already visible. Integrated tools to analyze bitcoin price fluctuations are currently being worked on by an investment data analytics firm. OkX, a crypto-exchange platform, provides guidelines for using crypto trading bots. Crypto influencer Daisy finds using AI bots immensely beneficial. She credits AI bots with revolutionizing profit realization and enabling traders to undertake real-world activities instead of being glued to screens.
Yet, not everyone is convinced. Christopher Inks, the founder of the TexasWest Capital trading group, suggests AI trading isn’t currently at a groundbreaking pedestal. Referring to the proclaimed high success rates of AI bots, Inks reminds traders to treat such claims with a pinch of salt. Despite their imperfect state, the scope of AI bots outperforming human traders in the future isn’t something one can rule out entirely.
Adrian Zdunczyk, the founder of trading group The Birb Nest, supports this idea. He believes the advantage AI bots provide will eventually diminish with the tech becoming commonplace. Traditionally programmed bots have long been in use. The novelty of AI is its pattern recognition skills. Given its expansive ability to process data, once AI becomes proficient in pattern recognition, trading will reach a new zenith.
The major beneficiaries of AI might eventually end up being those who can muster technologically superior, faster, and smarter AI systems. Therefore, AI’s ascendancy in trading might create an arms race of sorts, where your standing in the trading world might as well hinge on your type of AI. Once AI is universally embraced, finding an edge could end up as a futile pursuit. Consequently, the trader’s edge is facing a dilemma: Adapt to AI or face extinction. While AI enthusiasts argue for its transformative potential, skeptics question its current capabilities. The debate surrounding the maturation timeline of AI is certainly contentious. Regardless, AI’s ingress into trading is viewed widely as an inexorable tide that promises to change the very mechanisms of trading, for better or for worse.
Source: Coindesk
