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Robots in our life
Find out how widespread robots and artificial intelligence are in finance and trading. Who is the best trader in modern conditions, a robot or a human?
Jul 23, 2021
3 min read
Peter JanssenMarket expert

Until recently, artificial intelligence and cyborgs existed only in science fiction, but technologies are developing exponentially and the future has long come. Robots are everywhere: Tesla autopilot, Amazon delivery drones, Boston Dynamics developments, robot chefs and a bunch of other cool technologies are already among us. Automation and AI are an indispensable part of any progressive society and exist in all spheres of life.

Automatic trading in financial markets

trading in financial markets

What about trading? It all started with algorithms that could process trade requests faster than others and also execute them faster. The idea was that while one trader was waiting for the execution of his order, you could  have time to buy the required total shares on hidden pools at a lower price and sell the same shares at the request of the same trader. The trader got what he wanted, and the owner of this technology made money on the price difference. This entire procedure took only a few milliseconds. Over time, there were more and more traders with such algorithms, and the competition for the speed of execution of transactions grew. Since the connection to the exchange was wired, the closer you are connected to the exchange, the sooner your orders will be executed. Traders began to fight for a place in the office where the connection with the exchange could be faster by thousandths of a second, and large firms began to lay their cables to datacenters to gain an advantage.

Trading robots in 2021

Trading robots in 2021

Now there are many areas in algorithmic trading and these are no longer new technologies, but a new standard in trading. Robots are occupying an increasing market share because they provide liquidity, can implement the most complex trading systems, and introduce artificial intelligence technologies. Only novice traders trade manually, while more experienced traders have long understood that trading can only be automated.

Trading robots are speed and accuracy.

Let's say you have a trading system that you trade. You do it so well that you have never broken the rules of this system, you are like a robot. But you will never have the same reaction speed as a trading robot. The robot will react faster to any changes in the market and execute trade orders faster. Trading is a very difficult business and absolutely everything matters, and the most important thing is speed. The slower you react, the less profit and the more losses you get, besides, a human reaction will not allow even 10% of the potential of a trading strategy to be realized. It's sad but ok if you have a trading advisor.

Who is better: a trader, or a human?

Who is better: a trader, or a human?

Trader communities are already tired of arguing about which is better - to trade on their own or with the help of robots. Read about the advantages and disadvantages of both methods here: "Who is the best robot or trader?" Our opinion: it's up to you, try EA and make your decision.

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