Can Robots Outsmart Humans In Trading?


We are all familiar with stories about AI Robots that will be able to perform all the tasks that are known to man, and recently there are rumors how robots could replace humans in financial trading for good.

Also, it is important to note that some prominent scientists, such as Stephen Hawking, believe that it is essential to control AI technology as Robots could be more advanced than humans at some point. We remind you of Kasparov’s victory over the Deep Blue machine in the battle of man and machine that is, without a doubt, legendary. At that point, people realized they had the advantage of any machine invented by scientists. now, more and more financial companies are introducing, robots, software, and computers that should be replacing human analysts.

Can Robots Outsmart Humans In Trading?

New Generation of Trading

However, when we talk about financial trading, whether it is forex or binary options or maybe the traditional options market trading, we can see that there are different opinions.

Technology is advancing incredibly quickly every day, and therefore communication and financial trading are getting faster and easier. Advanced computers, robots, and gadgets are able to make an analysis that is more precise than any analysis performed by human specialists. For example, binary options software scans the market and delivers trades that have high chances of being profitable only in the matter of seconds or minutes.

This also means that in the future the relationship between investors and computer programs designed for trading will change. Robots are getting cheaper and their quality of work is more accurate so it will surely replace humans at some point. Of course, there will always be humans who want to interact with other humans, and who believe that no robot can replace their human broker.

Studies have shown us that robots lack of feelings and awareness can’t do the whole job. A study by Japanese scientists shows that the AI robots accuracy already surpass stockbrokers, though the number of predictions made by the computer is still relatively small. Japanese experts believe that artificial intelligence could change the way financial markets work.

The development of new generation algorithms that can learn and adapt without human interference have their own advantages and disadvantages. As stated in many reviews, it will be very difficult to foresee and control such kind of investments.

Who will control Robots’ Analysis?

It is important to note that robots rely on the analysis of millions of market-driven data to predict how prices will fluctuate in the future. Broadly speaking, when the market moves in one direction, the robots are able not only to follow that movement and predict the future movements but also to inform the investor about a potential investment opportunity.

Financial robots are already very close to a supercomputer in terms of reliability which could make human brokers and specialists somewhat obsolete.

Imagine that all robots, algorithms, and software perform perfectly and have no advantage over other similar products. At one point, everyone would use the perfect trading software and no one will have the edge to be better and more profitable. By doing this, the market itself would collapse and the need for trade would disappear. Even though this scenario is still science fiction, it is not impossible, even though standard economics says it should not be possible. Robots don’t have emotions, but on the other hand, this won’t prevent humans to act irrationally and emotionally when making a financial investment.

It will certainly take some time for scientists to develop an intelligent investment system that not only follows the trend and therefore we believe that experienced human managers have no reason to fear.

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