Trading Made Easy: The Efficiency of Artificial Intelligent Robots in Decision Making for Cryptocurrency and Stock Market Conditions

Investors and traders often find it difficult in predicting spot and future market conditions due to the complexity and volatility nature of bonds, stocks and cryptocurrencies. Failure to accurately predict the markets will result into losses or lack of profit. The development and introduction of AI trading robots has made it easier in the prediction of market conditions, hence trading signals are becoming more reliable.

AI Trading robots have proved to be more efficient and effective in the determination of market conditions. These AI trading robots vary and more complex than one another. These robots analyze very complex information and data of digital assets, then process them in the determination of possible trading signals. Trading signals help to inform traders and investors on what assets to buy, hold or sell.

The main objective of using these AI robots for trading is to reduce the stress and make investments more profitable. The beauty of these AI trading robots is that, they work 24/7. That is, they work all through the day. This makes it more reliable and productive than humans. The operational processes of AI trading robots are highlighted below:

  • Data analysis: This is the first step operation of any AI trading robots. Both simple and complex data are adequately understood by the robot. Certain relevant information are derived during the course of analyzing the market data.

  • Market prediction: Information derived from market data analysis (such as prevailing market conditions and general market sentiments), couple with assets’ latest news and global economic news are all used in predicting the directions which the market will tow presently and nearest future. Getting this process done by human will consume time and allow possible human errors.

  • Determination of trading signals. Market predictions made by AI trading robot are used to produce trading signals for traders and investors. Trading signals will tell you when to buy, hold or sell a digital asset. In bonds/stocks/cryptocurrency trading, short trading is an act of buying an asset with the intention of selling it very soon regardless the market conditions. While long trading is an act of buying an asset with the intention to hold and maximize profit before selling it. The main difference between these two trading activities is the “waiting period” before sale. Waiting period is shorter for “short trading” and longer for “long trading”.

  • Learning from past experiences:  Similar to the way humans behave, AI robots also learn from mistakes or errors made in past. Such errors are gotten from feedbacks made by users of the AI trading robots. These errors must be acknowledged, scrutinized and adequately noted. The solutions to these errors are incorporated in the upgrade version of the robot. Hence, there is always room for improvements in the development and production of AI trading robots.

In conclusion, AI trading robots have been well tested by traders and investors in the determination on which digital assets to trade and have proved to be very efficient and production. However, it is not an absolutely perfect system but still very reliable than humans.