Is A.I. based day trading the future?

This is a guest blog post from Alexander Voigt of daytradingz.com. Alexander’s been an active Trade Ideas subscriber since 2009.

At the moment, artificial intelligence is completely changing the processes of stock trading. That’s why competing financial services providers are betting on artificial intelligence to achieve the best possible performance of their financial investment products.

During the ongoing transformation of the financial industry, artificial intelligence will speed up the process of permanent changes even more.  Soon, more and more tasks of the banks will be done by robots – that means with the help of artificial intelligence.

However, this current trend will not only affect the biggest banks competing for market position against other large banks wanting to offer their customers the most advanced solutions. Other industrial sectors that are related to the financial industry have also recognized this trend. That’s why they invest more and more in providing their customers with more valuable and progressive services based on algorithms that created by artificial intelligence.

For private investors these services include, for example, stock screeners, stock scanners and charting tools that are highly important for private investors as they help them to make purposeful and easily understandable trading decisions. So, in more and more cases, computers replace the gut feeling with the statistically backed odds to make profitable trades.

In the past, decisions to buy and to sell have been placed with the help of a few numbers, facts and background information; the artificial intelligence does not make any decisions about buying and selling by following the perceived trends, but by determining the most promising actions being based on countless numbers of data points that fit with the current situation at the market.

Here the decisive facts are the price, the volume of the trade and the history of those numbers. The corresponding giant number of data points makes the big difference. As mentioned previously, investors used to rely on a few facts to decide to buy or to sell a certain kind of stock. But now the artificial intelligence offers them trading signals that are based on thousands of historical data points.

In regards to A.I. stock screening, Trade Ideas is the pioneer. Trade Ideas has recognized the significant potential for private investors to benefit from artificial intelligence. That’s why in 2016 Trade Ideas debuted an valuable addition to their main product Trade Ideas Pro.

Holly – Trade Ideas’ Artificial Intelligence Assistant

Every single day Trade Ideas feeds its servers with massive amounts of market and unstructured data. Day by day countless numbers of stock prices of more than 8,000 different kinds of stock are included into this system to get analyzed. Based on this data that is updated each day, the following day the A.I. scans the markets to find corresponding trade patterns and then display the findings to subscribers who profit from the trading opportunities.

Trade Ideas takes this one step further—with the help of Holly and the Trade Ideas API, private investors don’t only benefit from the opportunity to let the machine make their daily decisions for buying and selling stocks, but also from the service that executes all transactions for buying and selling automatically. The algorithms behind this process follow the logical rules of formulas to detect highly possible developments that are connected with mechanisms to enable the artificial intelligence to teach itself to get even better.

These automated processes that make fewer mistakes compared to humans are just as important for private investors as they are for the big banks. It may be expected that during the next years the trend to automate the transactions in day trading will go on – from the development of useful ideas to the completion of the deals.

Is the artificial intelligence in day trading for private investors the same kind of an advancement that high-frequency trading has meant for institutional investors in the past?

Of course a private investor will not turn into a high-frequency trader only because she uses tools like Trade Ideas Pro. But she can be sure to find better opportunities because of access the technological opportunities that were previously only available to institutions with massive resources. Being able to trade with the help of signals for buying and selling that are updated in every single second is something that sounded like a dream of private investors in the past. But today this dream has come true.

However, no private investor will be focused on real high-frequency trading even though Trade Ideas Pro may be capable of producing numbers of signals per second. We can be sure that by using the highly advanced services of Trade Ideas’ artificial intelligence based stock screener in the right way, the users will benefit immensely from this.

To gain a better idea of the whole process, it is highly recommendable to take the first step by using the free tools that Trade Ideas offers.

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