Will AI Change Trading?

Good Morning Traders!

In today’s email we’re going to discuss the following…

• Today’s Market Breakdown

• Lords & Peasant: The Rise of AI

MARKET BREAKDOWN

UPGRADE
Want Access to This Sunday’s Exclusive Newsletter?

The title is → “A Technical Analysis Guide that Works“

Every Sunday you’ll have access to an exclusive newsletter…

You’ll also get +$1,600 In Bonuses for FREE

PRO INSIGHTS
Lords & Peasant: The Rise of AI

The Rise of the Algorithmic Empire

As of 2023, it's estimated that 70% to 80% of Forex trades were algorithm-driven. That's right, algorithms are the new Wall Street wolves, silently prowling and pouncing in the digital forest of Forex.

Lords, Peasants, and Silicon Serfs

Currently, Forex is akin to a medieval society: the Lords (big institutions) hold the keys to vast data kingdoms and wield AI swords forged by the finest minds. Us commoners? We're left to tinker with tin-foil trading tools. But the AI revolution is about to democratize this disparity.

AI is becoming more and more accessible to the public. Gathering data and building trading bots will soon be easy. This begs the question… What happens if everyone has access to super-powerful trading AI systems?

Well, I hypothesize that the value and returns of all systems will become worse. This creates a race for a Super AI that can build and implement better and more profitable trading strategies the fastest.

An AI Arms Race

Imagine a future where trading bots skirmish in microseconds, crafting and discarding strategies like cards in a high-speed poker game. The winner? Whoever has the most money to throw at compute costs (mostly electricity),  reviving our Lords-and-Peasants saga?

Explosive Opportunities for Human Touch

Here's the twist: as AI reshapes the Forex realm, manual trading might not just survive – it could thrive. Why? Market homogeneity and systemic risk. If most algorithms are based on similar strategies or data sets, there's a risk of homogenization in trading behaviors. This could lead to situations where multiple algorithms try to execute similar trades simultaneously, leading to very volatile and extreme market moves.

AI’s Impact: A Drop in the Ocean?

Despite the AI upheaval, Trading, at its core, might remain unchanged. AI's presence isn't new; it's just getting a shiny upgrade. The market's essence, driven by human emotions and global events, persists beneath the digital surface.

Embracing the AI-Infused Future

As we hurtle towards an AI-infused trading horizon, one thing is clear: Trading will continue to be a thrilling, unpredictable beast. Whether you’re a Lord, a Peasant, or just an onlooker, the future of Trading is a spectacle worth watching.

Here’s some further reading on AI if you’re interested
→ Article

QUOTE OF THE DAY

This quote emphasizes the importance of leadership and the profound impact a strong leader can have, regardless of the circumstances or the composition of their team. It reflects Alexander's own leadership style and his belief in the power of courage and strategic insight to overcome numerical or material disadvantages.