How AI is Revolutionizing Stock Trading System

By Sony T
6 Min Read
Trading 2020

When it comes to individual companies, the tech sector is by far the most popular. It outweighs its more traditional counterparts like industrials, financials, health, and energy.


Ever since the personal computer came rolling around in the 70s, the tech stocks have been all the rage. It kept soaring through the 80s, 90s, and so on.

With time and technological advancements, Artificial Intelligence has taken over the trading system. AI or artificial intelligence is an advanced program designed for companies where the machines simulate human intelligence.

This means it can think, act, learn and solve problems like humans but in a more efficient way.

Technology evolves rapidly. It’s not very long since AI has entered the stock market. So, you need to keep your eyes and ears open for news about every industry. StocksReviewed blog is an excellent resource that’ll update you about the new ways to invest in the tech industry.

How AI is Changing the Game?

The word technology or tech has spread over the years. It applies to many industries.

The meaning of tech that is most popular describes technological software, hardware, internet, and telecommunication companies. In a world where electronic trades are ruling the market, implementation of AI is acting as a bonus.

Moreover, new investment ideas and portfolios are powered by AI these days. Imagine an application that can adapt knowledge on its own by accessing big data or could improvise on its own without being explicitly programmed. Yes, AI includes all these facilities and more.

Can you imagine how it can help the algorithmic traders if the networks are integrated to AI roots?

This extra tool can change traditional ways of trading by executing orders by automated trading instructions. You can even pre-set price, volume, time and other algorithms through AI systems.

The new generation traders can take the advantage of the complex AI systems to increase equity market trades as well as future trades.

Difference Between AI trading and Algo Trading

Algorithmic trading refers to a computer program that executes a trade following a set of instructions. Artificial Intelligence allows machine learning to analyze, study and predict market conditions and trading behaviors.

So, in algorithmic trading, conditions are set by humans but in AI the system sets the condition after it analyzes and studies the parameters.

Putting an End to Human Error

It’s normal to make human errors while using Algorithmic trading. Algo trading order placement accuracy depends on a predefined set of instructions set by the traders themselves.

Emotional and psychological factors can affect their judgement while comparing the market conditions. Fortunately, AI eliminates this risk.

AI allows the systems to check and compare market conditions, then adjusts trades accordingly. System that can process maximum data points to figure out trading patterns and even forecast trends, is desired by all the traders around the world.

This is exactly where AI plays a huge role. A machine forecasting trading patterns and strategies not only eliminates human labor but also gives superlative accuracy.  

This is the reason AI is taking over the traditional trading methods in financial institutions changing the sector for good.

Faster and Smoother Trading Speed

High Frequency Trading (HFT) where a large number of orders are executed everyday are not possible to be handled by humans alone. That too needs to be executed within seconds.

Thus, it’s evitable that faster trades require automation in decision making. Automated stock market and automated returns are faster, easier and most importantly accurate.

Nothing can analyze large data sets and recognize market movements faster and more accurate than AI. This is how important machine learning systems are to predict future outcomes and enhance strategies faster than anyone can imagine.

Understanding the Tool and How to Use Them

Python can be a great tool for starters. It can be used in simulations that start with a certain point in time and then simulate outward in the future.

With python data stack one can easily program machine learning algorithms and conduct statistical modeling.

Proper tooling essential if you want to achieve what was previously impossible. Tools like Python and Frameworks like TensorFlow can get you the proficiency in the trading market you desire.

So, take help from the internet to learn DataCamp or The Python Quantz to understand AI functions better. You can always hire programmers, but for customization and secrecy it’s good if you Understand the machine language yourself.

This will help you build algorithms independently in a coding environment.


The accuracy and efficiency that machine language or Ai can provide you, can save you big times from market crashes in today’s volatile market.

It revolutionized so much in the past 20 years, that it’ll be foolish not to gain the competitive advantage of this readily available system.

So, get ready to embrace AI strategy that interprets mathematical models and BigData. It’ll surely give the best decisions as a result.

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By Sony T
Sony is a passionate bloggers writes on Futuristic technologies ...
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