Topic: Are you updated about machine learning tecniques that useful to trading? (Read 144 times)

Talking about machine learning or Ai in trading, I would say yes Ai or machine learning can play an effective role in trading.
It can play an important role for a trader in establishing data by analyzing it from previous data in terms of various risk identification and signal prediction.
Various it farms are using it in trading.  Moreover, machine learning or AI can be used to easily obtain the information required for analysis or taking various knowledge related to trading.

You mean trading via artificial intelligence bots?
Yes, I heard a lot about it recently, it looks very promising, but I think there is still a long way to go before it reaches the required level.

There may be some good success stories with AI bots but I don't believe in them yet that they can replace human in manual trading.

But I am open to the idea in general and I expect that it will give amazing positive results in the future after it gets a lot of developments.

It's great to hear about your experience and your dedication to sticking to your strategies. Learning takes time and practice, and it's true that  be consistent and keep learning about the market in order to be successful. Good luck with your trading journey!

Actually, this is my first time to hear that new strategy. I do not have any insights regarding that subject and I really got interested to search for it. I think I'll seek a research about that later. I am only familiar to some new trading strategies like SMC or the Smart Money Concept. Just a quick info, I do trading for already 5 years and my strategies are still what I do in the past. I did not do any system hop like what most traders do nowadays and for me it is the reason why they are not making money in the trading.

Mastery takes time, for me it took me 4 years just to master few strategies. It is also hard to gather data that you can use in order for you to have an insight if your strategies are working or not. For those who are asking what is the key to become successful trader, I can say it is about being consistent learning about the market.

Last time I heard, machine learning was being used in "Algorithmic Trading", where trading bots follow your trading strategy religiously and execute orders for you automatically based on the rules you've programmed into the bot (e.g., volume, price, ML models).

I cannot thoroughly explain which ML algorithms out there have the most accuracy in predicting some kind of price action on the financial market, but there are some good resources that explain the use of ML, such as "Advances in Financial Machine Learning" by Marcos Lopez de Prado^[1]. This book covers topics such as data structuring, ML research, supercomputing methods, and others that use data science and programming. However, the book can be difficult to understand, especially if you do not have a background in hardcore programming, data science, and statistics.

But here is the caveat: even though using ML models for trading can give you an edge over other traders, you must still remember that there is no mathematical model that can miraculously predict the price action of a certain stock or crypto. Remember that price movements largely depend on billions of individual traders happening in real-time, as well as other fundamental factors such as legal issues, media presence, or perhaps the company's financial status.

At the end of the day, algo trading or using a bot in trading is just a complementary tool that you can use to improve your current trading strategy, and it is obviously not a "cheat" to instantly grow your money. You still need to upskill your analytical and risk management skills.

[1] https://www.amazon.com/Advances-Financial-Machine-Learning-Marcos/dp/1119482089

A trader must be an experienced and good trader in order to request a coder to write a trading bot or he can code it himself if he is a coder. If code is bad because of bad trading strategy and parameter used, that bot will result in bad trading result.

Bot is a great tool because it can work 24/7 without being tired and it eliminates emotion. However, keys to successful trades of bot is how it is coded. A good trading bot must be coded to prioritize cut loss and exit the market as soon as possible. If one position is failed, it is not over if capital is protected. Market is here for bot to find better opportunities but capital must be protected as most intact as possible.

Although machine learning (ML) is a potent tool for trading cryptocurrencies, its effectiveness depends on the user's level of machine learning and trading knowledge
You can't be 100% guaranteed here but I believe there are already some people who already making profits because of this.
Before making any trading decisions based on ML analysis, it is crucial to use the proper risk management techniques and to conduct exhaustive research.

Most recently there is rumour that ChatGPT is doing some magic all over the internet and it involves trading as well. I’m really not sure how successful the trading has gone so far for that sort of AI but I can see internet is buzzing with it. However, I’m really sad to see that trading has come down to such levels right now that we can’t even depend on human instinct and technical analysis when it comes to the trading. The first bot that I learnt about was grumpy bot which was created by someone in the forum itself. I’m not sure what happened to it but with the time it seems it’s outdated now. However, ML is highly advance but I don’t really admire its power to trade. It’s gonna create garbage everywhere one day.

Machine learning could help a lot in case of trading. Particularly in predicting market trends and selecting profitable trades. Algorithms needs to be trained on historical data to identify patterns that could give you profitable trades, and then use it to your advantage. This can be particularly useful for detecting patterns that humans would miss due to capacity limitations, such as analyzing large amounts of data or identifying patterns within multiple markets simultaneously. It is a way to stay ahead on the market. But it is widely used now through many trading bots. And as days go by, the competition will increase. This is not a new thing.

I have not really heard much positive information or success story with the use of ML and it is common sense that if bots are giving positive results in profit then more traders will rush in using it but rather more traders are criticizing it. I wouldn't use it because of the stories that I have been getting from it. A longtime ago I didn't put interest in it.

Appreciate your opinion

If you are talking machine learning, you should be referring to artificial intelligence (AI) used in trading, you probably also referring to many other bots which are existing.  You can even seen many bots on exchanges which can help you in trading. I am trading myself and manually without the use of any bot, so I do not know how accurate these bots are.

The recent AI bot that is most common recently is Chat-GPT, but according to my research, it can help traders, especially newbie traders to learn about trading, but not useful for people like me in trading because it would only give me the information newbie traders want and also the information that I can predict andd know myself, or even giving me wrong information.

As fro me, I believe in myself speculating what the price of bitcoin may be in short or long term. According to latest news, Chat-GPT even predicted that the price of bitcoin may reach $1 million in 90 days, but we all know how impossible that could be or how likely that would not be possible. Bots, AI used in trading, machine learning or whatever you called it, they may give you useful information, but that does not mean they are 100% accurate. You should rely on learning how to trade yourself without depending on anyone or anything, even if you want to make use of any bot.

Do you have an idea about ML used for trading? I have heard that ML is useful for predicting and outputting suitable results to the user, as he/she likes.