Q: Hello,
I've heard that stock traders are using AI-automated trading platforms for day trading. Is this practice becoming popular? Does AI truly help improve trading performance? Based on your knowledge, what are the success rates of these trades? Can these AI platforms effectively do the job? I would appreciate your insights. Thanks
I've heard that stock traders are using AI-automated trading platforms for day trading. Is this practice becoming popular? Does AI truly help improve trading performance? Based on your knowledge, what are the success rates of these trades? Can these AI platforms effectively do the job? I would appreciate your insights. Thanks
5i Research Answer:
We think how one defines AI is important here. There have been algorithms and machine learning types of strategies out there for years, so it is not entirely new. We haven't seen stats on AI being able to outperform but also think it is probably too early for this at this stage. The investment world will very likely see change over the years but we don't think we are there yet. We tend to find a lot of the tools use outdated data or sometimes just make very basic but critical mistakes, putting much of the output into question. This is and will improve, but we think it will still take a some time.