Original article can be found here (source): Artificial Intelligence on Medium
Bots have come a long way in the last decade. Today, they are used for just about anything but, most importantly, in trading. Not just for stocks and forex but cryptocurrencies too. Robo-advisers and certain crypto exchanges use Artificial Intelligence to provide their traders with the best advice on when to invest and what to invest in. In this article, we have compiled the top ten reasons why trading bots are better than humans.
1. Better Performance
Often times, trading bots are known to use algorithms to identify trends and decide when trades should be made. Because of this, we conclude that trading algorithms perform significantly better than the most experienced human traders.
Bots are known to automatically execute trades when a particular level has been reached. Bots tend to react with predictability and logic rather than human bias, and, when it comes to probability theory and statistics, this approach produces more favourable results eventually.
Bots do not collect data and study them with human bias or emotion, which can cloud judgment and disturb human efficiency. This is entirely ruled out for artificial intelligence.
Bots are able to process significantly more data and in much shorter timeframes than humans. This means they will not overlook any critical data which could be important to stay ahead in the crypto market.
Automated AI bots focus on tasks that are repetitive and time-consuming, not to mention, prone to errors. The speed of AI bots reduces slippage as reaction time is not necessary and this opens up arbitrage opportunities.
Where an employee typically works 40 hours per week, a machine can work 168 hours a week. AI bots can run 24/7 and this is useful when it comes to the crypto market. By working nonstop, bots have the advantage and potential to catch 4.2x more opportunities than a human can.
Humans by nature are inconsistent and unpredictable. This is another advantage bots have since they have been designed to offer consistency. When given a certain information, they reach the same way repeatedly.
8. In-built backtesting
As discussed on a Medium post, when using bots, every strategy can be backtested a number of times and in various environments to make you more confident that the particular strategy works, and whether you should stick with it or not. This additionally helps to manage risks better.
These are the advantages that Red Fort Exchange offers to users, providing them with a crypto trading platform powered by AI bots. If you have always wanted to join the crypto world, this is a good way to begin.