By Marco BösingWhat Is AI Trading?
AI trading refers to the use of artificial intelligence (AI) and machine learning to support or automate trading decisions. Algorithms analyze large volumes of market data, identify patterns in price movements, news, or alternative data sources, and generate forecasts or execute trades automatically based on their findings.
The spectrum ranges from simple rule-based systems to complex deep-learning models that extract sentiment from news text or process order book data in real time. For retail traders, the practical value lies primarily in using AI tools like ChatGPT for data analysis, strategy development, and market research.
It is important to understand that AI is not a guarantee of profits. The most successful applications combine machine analysis with human experience and a solid understanding of market microstructure.