Topic: How do you like AI for trading crypto? (Read 160 times)

Even AI cannot overcome the manipulation done to destabilize prices.
This relates to the role of fundamentals in trading because AI does not fully know the latest fundamentals,
AI only reads code or scripts that are already set and some past history.

But indeed the use of AI for trading will eliminate the Emotion of trading, Even now large Exchanges such as Binance have implemented the Bot feature for trading making it easier for anyone to trade.
But of course, the Bot feature is recommended to be used by those who already understand how to trade and know the science of trading.

Have you ever used a trading Bot before?

I've been reading here and there on people using models to predict BTC price for years, which is something that is performed in the stock market on a regular basis. The common approach is to incorporate historical data at a very granular level, and try to predict from patterns found within the data. This approach of course lacks the inputs of all the fundamentals that make the market sway to the tune of real world events and Tweets, which more often than not seem much more relevant than mere historical data.

There are models that try to combine data and information derived from social networks, incorporating at a minimum sentiment analysis, though point in time events that sway the market are way more difficult to analyse and incorporate, and as far as I recall, some even try to derive this sort of information from social networks.

Of course, models are bound to be useful, but they predict, not envision. The set goal is also key in all this: One could set out a goal to predict BTC’s max price in a 24 hour window, BTC´s price in 1 minute’s time, or BTC’s price in one week’s time. These goals render different algorithms, require different data curation, and derived potential usage. The more granular the goal, the more chances that something will throw the prediction off its tracks.

Everything is now buzzed as AI, though modelling has been going on for years. Nowadays the key is that you can created hundreds of models (variants with different parameters) and evaluate their soundness with much less effort (but more computing power) than before. Whilst modelling was the term until not long ago, everything needs to be rebranded as AI now it seems.

A few recent articles I’ve seen: These guys claim that their models can yield results three times higher than by simply holding whilst these others claim to try to incorporate past data and Google Trends to their model (which I don’t believe is a great predictor).

So, are all the traders out there being controlled by AI?

It could be a game changer, but even with AI, trading still doesn't guarantee profits because there are winners and losers in the market. I don't understand why some people thought AI would automatically make them successful in a guessing game like trading. Predicting price movements in trading is like making educated guesses, and it's heavily influenced by rumors and news. While AI can gather info from news, handling rumors is trickier. Without considering these factors, AI might struggle to provide reliable predictions.

AI in trading has always been good for executing predefined scripts that requires machine accuracy and speed. But when it came to decision making to execute trades based on machine's analysis, they have always been terrible and this is not about to change. The biggest problem with AI and trading is that they can easily be gamed which means it can lead to huge losses.

I wouldn’t trust my BTC with a computer program regardless of how smart it is or what certifications it can have. I think are far better off making their own decisions with their money. That way you don’t have anyone to blame if things go wrong, and you can be proud of what you’ve accomplished if you are successful.

I've been in the crypto space for a few years now, and the intersection of AI and human judgment is a topic that's always buzzing. I've seen friends who swear by AI-driven trading, relying solely on algorithms to make decisions. While they've had some wins, they've also faced unexpected losses.

Personally, I've taken a more balanced approach. I use AI tools to analyze market trends, identify potential opportunities, and streamline my decision-making process. However, I always trust my gut and experience when it comes to pulling the trigger on a trade. There's something about human intuition and the ability to consider broader market dynamics that AI might miss.

One instance that stands out is when an AI tool signaled a buy for a certain coin. It looked great on paper, but my experience told me to consider external factors like upcoming regulations. I decided to hold off, and sure enough, a regulatory announcement caused a temporary dip in the market, validating my decision.

So, my take is this – AI is a powerful ally, but it's not infallible. Combining the speed and data-crunching abilities of AI with human judgment and a nuanced understanding of the market seems to be the winning formula. It's like having a reliable co-pilot in the crypto journey. Trust the algorithms, but never underestimate the value of your own instincts.

In the future, I see a harmonious collaboration between AI and human traders becoming the norm. The key is responsible integration, where humans guide the AI, leveraging its strengths while compensating for its limitations. It's not man versus machine; it's man with the machine, working hand in hand for smarter, more successful trades.

AI-powered trading systems automatically determine which investment guidelines to follow based on data and journalistic information, an unifying element of general trading theory. The combination of AI and revolutionary technologies can lead to creations that can help facilitate a lot of growth and ease of use, which can be critical in the dynamic crypto market. AI is unable to fully replace human judgment and experience, but it can help in many areas and lead in new directions. It can especially help in quick and accurate execution of technical and administrative tasks. I will not support AI in investment, because see if I invest in bitcoins, do I want to control it through AI technology. Then only AI can analyze the data regularly and predict the potential impact of the investment based on the data. But it won't give you value from the investment. Caution should be exercised in the use of AI, as there is a possibility of loss in any need, and there is no guarantee of AI control. Each determination should be verified by a human.

You have just said it well enough in the first paragraph. While I also don't find it wrong to trade using AI algorithm, it is best to work with your own knowledge as a trader especially if it is in depth enough to keep you going. AI is still more or less like an artificial brain trying to make smart decisions for you using the the set standards and parameters derived from the previous algorithms gotten from the same trades that have happened in the past to make future decisions for you.

Whereas you will agree with me that, these standards or previous results could change at any time which as a trader, you could perhaps easily notice from your trading experience and try to make decisions that are far greater than what I would have suggested to you. At the end of it all, it is better to make your decisions and in some ways, use AI tools when you're not clear in what decisions to take at the moment. The AI algorithm becomes a birds eye view for you to make better and lasting decisions.

To be honest, I researched and discovered that using AI trading correctly is quite difficult. In short, it's also quite complicated, from what I've seen and discovered.

Also, there are only a few who understand and know how to use AI trading; almost when I was studying it, it was too complicated, especially for beginners who don't know anything to try it. It's not easy to set up because it's just a mistake to do it; set-up loses immediately, that's what I found out. So it's no wonder why so few try to use it.

I already have experience in using AI or trading bots. The experience of using AI or bots will be profitable if the bot's commands or settings are in accordance with market operations. If the market goes the opposite way from the setting then we will experience a loss. This is completely ineffective if we leave the AI or bot running without our supervision when there is a trend change that is not in line with the commands we entered into the AI or bot.

It's better for me to trade with my own abilities than using AI or bots. If AI or bots are good, why are there still so many manual traders? Bots or AI are just business, they only want the money of traders who are lazy about learning and analysis.

Bots have been used in trading for a long time and they are also highly effective in assisting traders. Therefore, using AI also brings some benefits in synthesizing data and from there we will have a more comprehensive view of our trading activities. AI cannot completely replace us in analyzing and providing trading orders. We only use them to assist us during certain periods.
AI is not a miracle tool, but it cannot be denied that it is an effective support tool for many people in many different fields.

Of course you can utilized AI not just in crypto trading as it can crunch a lot of numbers unlike humans and make a decision so that you chances on winning will increased. We have this so called AI already though, called trading bots.

And it had help many of us here, although I won't tend to lean more of us just being a holder instead of going into full trading because it's very hard and it will take a lot of time. But yeah, why not, just remember though that you are still the one plugging those parameters in trading bots, so at least you need to have a good experience in the background to make it work for you.

OP, I cant relate very well because I am not a trader. But with my understanding for the use of l AI, I don't think it is necessary for trading. One of the main reason AI technology was invented is to facillate what we do and how we do faster and accurately.

So, I know that people who do day to day trading does not rush the market or want to trade faster so there is no need using AI to facillate your trade.

Also, AI don't have any mystic or super powers. The knowledge it has is a compounded knowledge from different resources and informations in the world. And these informations were provided by man. So whatever it does still comes from the knowledge of man

Well, first of all, this topic should be in the trading discussion. Anyway,  to answer your topic, AI for trading is a big no. Why is it simply because I don't trust the decisions of an AI? AI stands for artificial intelligence, which means AI or a trading bot will only rely on what information it has or has stored. Algorithm, analysis,  and execution will only rely on what it has, which means that if theres a new pattern in a crypto currency movement, for example, bitcoin, how can a trading bot execute a trade? Yes, it can compute the possible profit and loss, but how can you be sure that you will earn from it? Do you see a news article or even a statement that gets a lot of profit with the use of a trading bot? No bits because AI still has a lot to work on, and I don't think that AI could handle the unpredictable and volatile nature of a crypto currency.

That's why I'm not convinced by anyone who promotes trading bots; in the first place, is it legal to use? Still not proven; well, it's my opinion only, so yeah, I still will not trust an AI to trade for me. As an IT professional and crypto trader, I know the risk of using a trading bot.

This topic is better suited for discussion under the trading discussion board, please move it there.

If you are able to maintain a balance between the use of AI and your own personal knowledge for judgement in trading, it can increase your chances of being profitable. But if you start to depend more on the use of technology, It may fail you anytime, and maybe at a time that will be more bad for you. Any trader who aims to depend on technology alone to trade is a lazy trader.

Laziness and trading are not two good pairs.

 Well, we have seen some successful traders who are actually incorporating AI into their trades but I believe the success will not be for long term. It's still a lot different when you are trading following your own analysis in the market, your own mental capacity to trade, and that's where you are trading for long term success. Trading is hard, that's why we need to be careful and more cautious in trading the market, and it can't be successfully achieved if we rely on AI or using robot machines to trade in such an unpredictable market.

However, the decision to trade using AI or not still relies on individual decision to trade. But on my part, I will stick to my own knowledge and skills to trade because that's what I believe that will bring me to the peak of my success in trading.

The use of crypto trading bots are pretty old news in this industry. A couple of people in here saw news about these crypto trading bots who learn from other people's trading patterns and creates a foolproof cryptocurrency trading algorithm that provides you with consistent profits with little to no downsides, some even popping up as early as 2015. I tried a couple myself in 2020 out of boredom, found out that most of these crypto bots are nothing but sham practices and are just made to fool people into thinking they can get a reliable trading companion that would do all the heavy lifting for them.

With the advent of AI Crypto Trading, I don't think I could have enough trust to depend upon these algorithms for my trading journey. I'd rather just trade by myself and blame myself than rely upon these bots only to be disappointed again.

Ever sensed a bit of skepticism among seasoned crypto investors regarding AI-driven trading? I believe It's a sentiment worth discussing. The crypto landscape, intricate and ever-shifting, often feels best navigated with a touch of human intuition.

However, AI algorithms can sift through vast amounts of data, uncover patterns that might escape human scrutiny, and execute trades in the blink of an eye, which is a decisive advantage in the dynamic crypto market. And that can be revolutionary.

A mistake people make is that they rely on AI alone to carry out their trades. And while AI can do a lot, it is not a replacement for human judgment. Humans possess invaluable experience, intuition, and risk assessment skills.
I believe that if AI is utilized responsibly and effectively it can be a game changer.

Curious to hear your thoughts on the collaboration of AI and human judgment in the future of crypto trading. Share your thoughts!