Is AI Really Effective For Trading?

There are differences you need to know͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ Anytime we see a new buzzword that keeps popping up all over the place, a certain amount of skepticism is healthy. I am Anytime we see a new buzzword that keeps popping up all over the place, a certain amount of skepticism is healthy. I am definitely feeling that way about AI or artificial intelligence. So I have been watching how the term and label “AI” is being used and it is definitely applied very liberally. But as you dig in, you start to see some really effective uses of it being applied. Let me share the key to getting the most out of AI. It is actually simpler than you may think. The first result when you search “What is AI?” is a definition stating it is when machines do the work of humans. I guess that is true but that has been going on since the wheel was invented and really isn’t anything to get excited about. Another definition guides us to some of the more effective applications of AI and the ones that are useful to us in finding winning trades. That definition describes artificial intelligence as when machines learn and adapt from repeated patterns. Learn and adapt are the key differences in the second definition. Charts are one of the most useful tools for traders and they are essentially massive amounts of information in the form of a picture. they have proven to be effective at recognizing patterns in that data they help us predict what might come next with a higher probability of success. While there are a handful of patterns that are believed to be extremely reliable it is also known that markets are dynamic and the use of those patterns has to adapt. For example, the doji candle pattern is a trusted sign of potential price or trend reversal but it is dependent on the context of what is happening around that pattern. You have to look at the candles around the doji to apply it with any level of success. Even then, it is even more effective when it is coupled with other indicators to boost the predictive power and consistently find great trades. But which indicators and what signals from those indicators can evolve and change. Coupling that doji pattern with a bullish MACD crossover may work perfectly right after a broad market drop but it may not be as effective in a sideways market and could be a false signal. Sound confusing? That is where AI becomes a great tool. Effective AI can do all of the hard work to figure out when those two patterns are most effective by scanning through millions of examples and looking at the results. Even better, as it looks at those millions of results, good AI will notice other signals in all of the winning results and add those to the formula. That is the adapting and learning part. Here is the key to getting the most from this latest buzz. It all starts with what to tell AI to learn. The old “garbage in, garbage out” concept. This is why simply using AI to find previous successes is not really the best part. Keith Harwood’s new program is a great example of good AI. As a former market maker he is well aware of the elements of a great trade set up. He has put those into a new program he calls P.A.I.D. Predictive AI for Dynamic Markets. He has used the power of this technology to take the advantage market makers have and adapt it and learn new ways retail traders can exploit their tricks. If you want to see good AI in action, be sure to sign up for his upcoming event [here](and see how it works and the killer results it is producing. Keep learning and trade wisely, John Boyer Editor Market Wealth Daily --------------------------------------------------------------- See Related Articles on [TradewinsDaily.com]( [Is AI Really Effective For Trading?]( [Here Is The Bigger Trend-And What To Watch]( [Key Trading Info From Candlestick Charts]( [Chart of the Day: Kohl’s (KSS)]( [Buy Signal Alert for IRM Stock]( --------------------------------------------------------------- [TradeWins Logo]( © 2024 Tradewins Publishing. All rights reserved. | [Privacy Policy]( | [Terms and Conditions]( | [Contact Us]( Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. 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