Trading has become popular during the past few years. Many individuals who dream of becoming financially strong are increasingly joining this field. The reason behind this is the probability of attaining financial stability in less time through trading. Because people are always in search of short-term money-making techniques.
Technology has a lot to do in this trading domain. With the entry of AI into technology, trading has also evolved. It is not the same as it was with the manual mode of trading.
The Involvement of AI in Trading
As we all know, technology has always proven to be beneficial in many aspects of human life. It has made life easy by reducing the workload of humans. It has also saved time and energy for people.
The same is the case with the introduction of the latest technologies in the trading field. AI being the most used technology in the digital world, has also taken a prominent position in the financial market. People are making good use of it through AI trading apps for their trading activities. However, not all people have adapted to the usage of AI for their trading activities. Many people still prefer the manual approach to trading.
There are many trading apps that are making an impact in the trading field. A lot of people are using these platforms to bring about their trades. AI Trader is one of the leading AI trading platforms. It has all the tools and techniques that are required for better trading results.
In this article, we will compare the efficiency of both AI Trading and manual trading to learn which trading method is comparatively better.
What is the Difference Between Manual Trading and AI Trading?
Manual trading: It is done by humans where they decide when to place buying or selling orders. They collect data from across the financial market to make trading decisions.
This comprehensive data collection is not easy. It is very tiresome and involves a lot of human struggle and hard work. For making effective trading decisions, humans have to check market data thoroughly for the compilation of data. The data is taken from past and present market trends. News, articles, blogs, market sentiments, and social media are primary factors in this regard. This collection of data from so many different sources is extremely difficult. Also, there are chances of miscomprehension of data. Humans can make errors while collecting data and make faulty trading decisions. They can miss out on the high chances of fruitful tradings.
AI trading: On the other hand, AI trading uses AI technologies like deep learning and machine learning algorithms for collecting data and making trading decisions. Although the development of these algos also involves human intellect, the precision and accuracy of these technologies for making decisions can not be achieved through manual trading.
AI technologies can check thousands of market data points in milliseconds. It can make faster trading decisions than humans. The speed in the trading field is a primary factor. This is because the price of different digital assets keeps changing every single moment.
Moreover, AI trading is not affected by human emotions. It is done practically based on data rather than emotions. However, we can’t completely rely on AI trading, as AI still needs human assistance and supervision to make trading as effective as possible.
AI Trader in Comparison with the Manual Trading
Overview of Manual Trading
Manual trading is done by humans with the help of technology. Humans check market data and take information from different sources. They use computer programs to store and analyze the collected data. They then make decisions on the basis of information that they infer from that market data. Humans also use their instincts to predict future happenings in the market and execute trades accordingly. This is only possible for experienced traders.
Following are the key features of manual trading.
- Fundamental analysis is done by checking through a specific company’s financials and economic factors.
- Technical indicators and charts are used to predict changes in the prices of different digital assets.
- Market sentiments, news, and trends are important factors for making decisions.
- The emotions of traders also affect the trading decisions in manual trading.
- Meta Trader and interactive brokers are some of the platforms that are used for analyzing charts and executing trades in manual trading.
- Human trading has got the advantage of adjusting trading strategies in real time by observing market trends.
- An experienced human trader can make better trading strategies based on their instincts and skills.
Overview of AI Trader
AI Trader is a trading platform that facilitates traders to make effective trading decisions through its latest technologies. It executes trades automatically by using pre-set criteria for executing trades.
Following are the features of AI Trader that assist in AI trading.
- AI Trader uses machine learning to collect useful information from history and ongoing market conditions.
- It uses that data to make accurate predictions about expected changes in trends and price movements.
- It generates trading decisions after a thorough market analysis. It sets trade entries and exits at a perfect time when there is a maximum chance of gaining high profits.
- AI Trader examines patterns speedily and generates signals to notify you about every little opportunity for a profitable trade.
- It can devise trading strategies by itself with the help of analyzed market data, but it also allows you to make your own trading plans.
- It facilitates you in checking the efficiency of your trades through its built-in tool for backtesting trading strategies.
- AI Trader is immune to emotional trading. It carries out trades that are free of human emotions like bias, fear, and greed.
- It can monitor market conditions and happenings all the time as it is not prone to fatigue or any other human shortcomings.
- AI Trader is way faster than humans when it comes to executing trades in less time.
How AI Trader Leads in Yielding High Trading Profits Than Manual Trading?
| AI Trader | Manual Trading |
| It is consistent in performing trading. AI Trader does algos-based trading.It does not deviate from pre-defined trading rules and performs trading accordingly.It can sift through large data sets and is suitable for conducting high-frequency tradings.AI Trader can take advantage of small chances of trading that keep assimilating and result in high net profit.AI Trader is capable of monitoring the financial market 24/7 and can execute trades at any time.It can keep an eye on multiple markets and can trade with different assets at a time. They can execute a large number of trades speedily in a short time. They can analyze unlimited data in no time. | Manual trading involves variability.Trading depends upon trader’s skill and experience. Human traders can change their trading strategies according to their gut feelings and changing market sentiments.Humans need more time to go through a lot of data points.Humans can overlook small trading opportunities.Humans can not check the market continuously and they can carry out trades only when they are active.Humans can only have a check on limited numbers of markets and they can only trade with a few digital assets at a time.Human traders are unable to manage a large number of trades. They need more time to analyze data and make trading decisions. |
Summary
Closing the discussion, we can say that AI Trader is more precise and efficient in performing trading activities. However, it can not operate effectively without human supervision. Trading needs both the speed and accuracy of AI trading as well as human intellect. By joining the power of both trading modules, we can get high profits adding to our financial objectives.