Introduction To AI-Powered Trading Bot
AI has created a new phase, a brand new opportunity in a new era of trading, which include Currency pairs (Forex), NFTs, Crypto,Commodities (Gold, Oil etc), and Stocks.
This remarkable achievement has brought broader audience who had no idea or knowledge of trading yet willingly accepting the fact that they invest in the space even though they lack the basics and orientation of fundamental trading analysis. What is trading?
Today we shall discuss the merit and demerit of Artificial Intelligence in trading perspective, so stay aboard till the last very word.
AI and Forex
Artificial intelligence is changing everything, the art, architecture, banking and finance. Et cetera
Including all that was mentioned, the integration has now reach to blockchain tokenomics and trading in general.
Trading Broker Platform
Definition: A broker is a platform that enable users to trade crypto, stocks, NFTs and currency pairs by selecting your pair, time frame and amount you intend to trade on.
There are many different brokers out there design for forex and normal trading.
Example of Broker: quotex, pocket option, expert option, ex-nova, luno, elirox etc.
I have tried the first four that i mentioned and they're pretty good for me.
Attention! When selecting a broker make your own personal research before deploying your hard earn money into risk.
Reminder! This is not a promise of fortune rather a chance to seize which can expose you risk.
Type of Automated Trading Bot
There are so many types of AI Bot design for trading nowadays, you just need to select the one that suit you. Example
- Elibot from Elirox
- PocketBot from Pocket Option
- Quilbot from Quotex trader
- X-Nova from Ex-nova platform
This type of trading bot are mainly made to trade only at the desired broker, and therefore they could not trade at DEX or CEX.
Advantage of Artificial Intelligence Trading
Let look at this five(5) importance of AI Trading.
- Market Analysis
- Pair Suggestion
- Trade Suggestion
- Quick Profit/Maximise Profit
- Risk Management
Market Analysis:
The Bot help analyse the entire market faster to ensure a smooth performance trade, this helps understand the chart and trend before trading.
Pair Suggestion:
After the market was analysed the bot suggest some profitable pairs which you can now trade on. This suggestion involves crypto currencies, forex, commodities and stocks.
Trade Suggestion:
This is a space where the automated bot highlight a bullish or bearish signal, using the previous analysis and pair selection you choose to trade on.
Quick / Maximise Profit:
This AI trading strategies help secure more profit due to its programming features which reduces loss of capital.
Risk Management:
The automated trading system help users to reduce and control loss of asset invested in the trading broker.
Disadvantage of Artificial Intelligence Trading
AI is an automated coded system which may likely fail to sense a fluctuations or inverse of a trade which might result the following.
- Market Volatility
- Technical Issues
- Security Risk
- Bad Experience
Market Volatility:
Bot can be affected by unexpected market changes or sudden event, which might lead to severe loss.
Technical Issues:
Bot can malfunction or experience technical issues due to network error or other technical problems which may lead to heavy loss.
Security Risk:
Bot can be vulnerable to hackers and security system servers breachers or other security threats if not properly coined.
Bad Experience:
People who had no idea or fundamental knowledge of chart and candles, lost trades due to their reliance on AI bot.
However this eliminate the interest of new traders making them to fled and never came back.
Attention! You will learn nothing if you keep relying on bot for trading, trading bot are made likely to made the owner more profitable than the users. Take note of this.
Go and learn trading by yourself without waiting for signal, or any form of bot.
Conclusion
Overall, AI Trading Bot can be a valuable addition to a trader's toolkit. But it's essential to understand their capabilities, limitations and risk to use them effectively.
However this is crucial in making more faster profit, aiming CEX to integrate more trading opportunity with lesser risk.
Recall: All the AI Trading Bot information listed has nothing to do with CEX and DEX is mainly on trading brokers. May be in the future we may decide to highlight some point about CEX and DEX.
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Crypto Education