Advances in artificial intelligence are set to greatly benefit cryptocurrency and traditional traders by analyzing behaviors and determining when a prospective trade may be the result of stress, FOMO (fear of missing out), greed, or panic — without the fallbacks of human error.
Though AI traders can help provide greater peace of mind, they aren’t necessarily meant to replace human investors. Rather, they are meant to supplement the trader’s own knowledge and expertise by advising against what the emotionless AI believes might be a bad call. Indeed, lacking emotion is the most crucial element of trading AIs, as emotional trades frequently result in bad trades.
Let’s take a look at three of the best AI Trading Assistants available today.
In December of last year, Dutch multinational banking and financial services corporation ING launched an artificial intelligence bond-trading tool called Katana, which promises to reduce costs while accelerating transactions.
Katana itself is a web-based application capable of forecasting “what prices could win a trade, while also providing traders with more information on recent price trends and other relevant external data,” as noted by Quartz.
Katana solves the problem of deciphering which data to read by “learning from a database of historical trades that goes back five years,” but it still isn’t perfect. ING has plans to continue feeding as much data into Katana as possible before deciding which is the best method for making the most “effective predictions.”
NAGA TRADER’s CYBO
CYBO is NAGA TRADER’s robo advisor which has been developed by experts to utilize technology in place of emotional trading. It features dynamic risk management and global diversification, and aims to catch the best trading opportunities and reduce error rates.
CYBO effectively seeks to increase profitability by making reliable risk assessments. In doing so, it controls users’ risks based on their own preferences.
One client wrote about CYBO:
You cannot consult an ordinary trading expert while you sleep. But CYBO is that kind of specialist you can consult anytime. I had a nice sleep, and woke up to find a series of successful trades closed for me.
The results also speak for themselves. According to the official website, if you had invested $50,000 6 months ago, you would have earned $6,450 Net Profit — a return of 12.90 percent. For reference, CYBO is set-up by answering 7 simple questions about personal trading preferences, after which the trading assistant is ready to begin immediate trading based on your trading habits and favorite markets.
AiX provides instant trader-to-trader interaction and removes the need for inter-dealer-brokerage through advancements in AI.
AiX purports to use AI to connect traders across financial markets through a combination of cognitive reasoning technology and blockchain technology, effectively providing them “unprecedented insight and control.”
AiX’s primary drawback, aside from those most common to the nascent technology, is that it has yet to see its full-scale launch — which is currently slated for November 2018.
What do you think of these three AI traders? Which do you think is the best? Did we leave any out? Let us know in the comments below!
Images courtesy of YouTube.