AI Robots for Day Trading

Day trading is a concept where you can buy or sell a financial instrument on the same day, irrespective of the number of times you buy or sell over the course of a day.

Financial service sectors are consistent and constant in making price moves as per the changing market demands where many frown upon how technology can reshape the face of trading.

Since the advent of the Internet, trading has witnessed innovation with the coming of powerful trading platforms where investors require deep and sound financial knowledge in order to make lucrative profits.

When we think about new advances in the field of trading, we look upon technology and all our eyes fall on Artificial Intelligence!

The use and scope of Artificial Intelligence are limitless where AI-powered robots have made a global mark in revolutionizing every sphere of work where financial trading is no exception

Automated trading programs have been established in the day trading software, leveraging the power of Artificial Intelligence and Machine Learning. These in-built computer programs are made proficient enough to take decisions without the interference of a trader and are made to learn how to react as per the changing circumstances upfront.

Who Surpasses Day Trading Feasibility Test: Humans or AI Bots?

AI-enabled bots run a predefined set of commands related to financial trading which requires you to possess a fast, reliable, and secure network to deal with them to explore the infinities of market investments.

Automated trading systems are those systems that never sleep and can help you earn monetary benefits from every possible trading opportunity that comes in a day.

Moreover, we humans react emotionally to many situations that may turn the tables and may render unexpected results for which we may regret. Machines on the flip slide know no emotion and are not influenced by any mood or emotion that impacts their overall performance.

Nevertheless, we all have seen the two significant traits of technologies: its flexibility and its intransigence.

The power of automation has reduced errors and time frames and has improved accuracy and productivity but its inability to react promptly as per the ever-changing and mobile requirements pulls it back to make a contribution in that area.

This is where machines take a back seat.
“A Human Eye is Essential to Oversee a Robot wherever applied!”

Source: Forbes

Undoubtedly, technology can teach machines and e-devices to trade but the question arises when these smart robots are to engage deep into high-frequency trading.

The stock market changes its behavior multiple times a day where a computer device can be best put forward to eliminate manual repetitive tasks but not the ones that require instant decision making.

When it is to make changes as per the incoming data feed, savvy day traders can adjust and make a move but the same cannot be expected from any day trading algorithm.

“Trading AI Bots need the Necessary Aid from Humans.”

Source: CMO

High-end computers are rarely questioned about their capabilities, instead, they are hunted down over their inabilities.

Robots are facilitating traders worldwide on the floor of exchanges where they deliver expected results in determining, analyzing, and predicting the market trends and unforeseen changes while they are dependent on traders for the last say on buying or selling an asset.

In most instances, humans have to instruct machines to buy ABC or sell XYZ products, looking at the profit/loss threshold frequency when stipulated parameters are met.

“Humans Easily adapt to new Strategies whereon Algorithms need Time for the Same.”

The trade market is unsteady in its demands and trends and makes transitions as the data changes. In this tough scenario an emotional human trader can well react to the new norms and can build up a new strategy to get profitable investment; however, asserting the same for AI-based intelligent machines won’t be true.

The trading world is run by investors and traders who know the art of generating passive income, keeping deep insights about day trading, forex trading, and other financial trading forms.

The human traders are well known to the fact that taking advantage of small price moves can be a lucrative game—if it is played correctly, adhering to a well-thought-out strategy.

And if we talk about the automated systems, they are made to predict and provide best and feasible solutions as per the pre-defined set of possibilities and are not trained to respond to unforeseen situations.

They cannot come up with an effective strategy to manage day trading problems in the nick of time, unless programmed, and fail to adjust and make productive strategies and decisions when exposed to the changing market demands.

[Computer programs can be made to adjust to the ongoing modifications and iterations but it’s a time-consuming task and expensive too.]

[Prefer Reading: “AI Robots and their Impact on Human Life.”]

A Quick View of Pros & Cons of AI Robots in Day Trading

Even though we have discussed the major aspects of trading with AI-based automated robots and have also checked their feasibility comparing them with the human competencies, still we have listed some other merits and demerits of automated trading systems for enhanced data acknowledgment.

Source: CMO

-List of Pros


Automated robots allow easy backtesting by applying the trading rules to market data to analyze the viability of the idea and its effectiveness. Backtesting takes time, but when robots are at work results are rendered nimbly.

#No Emotions

Machines and e-devices eliminate emotions from trading and execute the trade orders once trade rules have been met with no hesitation or keeping question for trade.

Automated software ensures that the strategies applied while trading is objective in nature that helps in successful trading clearing the hindrance of emotions when trading takes manual grounds.

#Speed and Accuracy

Without any traces of doubt, machines deliver more accuracy in their work within a stipulated time interval as compared to humans. Automated trading solutions are able to determine and track trading opportunities promptly and are proficient in making related decisions in real-time.
The possibility and probability of errors are lowered to negligible.


With fewer errors and thousands of computations executed within seconds, the AI trading robots can help you set free from the prison of managing stock charts and statistics, getting you more time to spare on financial insights and knowledge or optimizing strategies.

-Array of Cons

#System Failures

Computers, machines, or any mechanical device has a vulnerability to witness random mishaps like a crash or downtime issue which makes automated day trading infallible.

As these devices run over the Internet, once the connection is lost, market orders might not be received at the other end which can cause a big halt in the ongoing processes, affecting many at a time.


As said earlier, bots or machines which run machine learning algorithms and are powered by artificial intelligence need human monitoring, considering their finite inabilities and the potential failures due to crashes or lost internet connectivity.

The possible outcomes for this could be errant orders, missing orders, or duplicate orders which could be minimalized to zero possibility with human intervention and keeping checks on their anomalies

#Over Optimization

Excess of anything is bad. Over-optimization is implementing excessive curve-fitting that produces trading plans and strategies which would prove to be unreliable in live trading.

Mostly it is assumed that a strategy that delivers exceptional results (100%) on paper will render the same when applied practically; nevertheless, profitable trading is a result of a viable plan or strategy that gives feasible results when applied to a live market.

In a Crux

Artificial Intelligence has transformed distinct industry verticals with no exception to day trading. AI-powered robots have been implemented in financial trading serving us with plenty of advantages but still day traders will never be replaced by prediction machines.

The match of computers against computers will hardly bring new profits, making day trading more predictable. Whereas humans against computers would keep the fire on while challenging humans to compete with machines that are indirectly run by other humans in the background.

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