Thoughts on AI analysis for trading

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alex.shardLegendary
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#1May 9, 2021, 06:49 AM
So, I feel like AI analyses are mainly aimed at traders to help them improve their trading decisions. But honestly, based on what I've seen, I don't think they're really that useful. Maybe I'm missing something here, which is why I'm asking you all. Are any of you traders using these AI analyses? Do you think they actually help? To me, nothing beats the classic methods.
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alex2014Full Member
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#2May 9, 2021, 10:00 AM
Mate take whatever exchange offers you as a promotional gifts, innas much as there are situations where the AI analysis on exchange performe at a near success level sometimes,  that doesn't mean you should tely on those AI analysis on exchanges. Do your own research (DYO) Then combine your analysis with the data gotten from AI that way you stay ahead of any tendency of manipulated market analysis.
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luckyapeFull Member
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#3May 9, 2021, 01:16 PM
Yeah, I clicked No on that poll too. Most of the AI analysis you see on exchanges is just a fancy skin on top of stuff we've had for years: trend following, orderbook heatmaps, sentiment scraped from Twitter, etc. It all sounds smarter when you call it AI, but at the end of the day it's still pattern-matching on past data with zero idea what the next headline or liquidation cascade will be. And remember, the exchange's business model is volume, not your PnL, so their incentive is to keep you clicking buttons, not to quietly hand you free money.
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lynx07Member
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#4May 9, 2021, 06:25 PM
AI gathers information based on keywords on the internet, but using AI as your primary analysis is a poor choice as a trader. It's tantamount to wasting your money. Using AI is highly discouraged. The key to technical analysis in the exchange market lies in using intelligence, experienced understanding, and minimal emotion when making trading decisions. In my opinion, if we're unsure of our own trading abilities in the stock market, it's better to seek the advice of friends or experts. This is more beneficial because we can record our profits and losses and then improve as a learning experience for the future. Using AI in the stock market is a poor choice, in my opinion, because AI can operate on false information and cause you to lose a lot of money.
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block_2018Senior Member
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#5May 9, 2021, 11:06 PM
Yes - I am a trader but in spot not futures. But not a trader who relies on that as a source of income. During trading never used any AI analysis offered by the exchange, but I see some people say the AI analysis provided is useful he said not knowing which is more credible between AI analysis or own analysis because for me own analysis is better.
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shard_minerSenior Member
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#6May 10, 2021, 02:44 AM
AI is still a new area for traders to explore in the trading market and as such , it would take a while for traders to catch up with the way it functions because I believe for now, AI analysis is quite skewed if you as a trader knows what you are doing.  AI helps the lazy traders who may be too engrossed with other duties but it doesn't predict accurately how events might turn out to be. It is meant to be a very powerful tool for execution and scaling analysis in trading, but it doesn't totally eradicate or replace the need for human oversight, strategic decision-making and input and must therefore not be relied on mostly when one takes trading very serious.
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tom42Full Member
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#7May 10, 2021, 05:51 AM
I'm with you 100% Oshosondy that AI stuff on exchanges feels like a total gimmick flapduck and yUriy1991 are spot on It's not real analysis it's just marketing they probably take a few basic indicators like RSI and moving averages bundle them together and slap a fancy "AI" label on it  Like why would an exchange give you a tool that actually makes you money Their whole business model is to get you to trade more not win more they just want you to keep clicking buttons so they can get your fees   Nothing beats doing your own research trusting the exchange's "magic AI" is just a lazy way to get rekt imo Maybe it's okay for getting an idea but I would never base a real trade on it.
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ryan_orbitFull Member
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#8May 10, 2021, 09:14 AM
I haven’t tried AI analysis for trading and I don’t think I will ever anytime now. I just don’t feel the need to and not convinced enough that their results will make me be better than I am. I feel it will only make me feel relent, lazy and not want to get the best of myself in trading. I see a lot of success stories using AI trading analysis and bots for trading, both in trading telegrams groups and also Instagram ads on my feeds, but I don’t feel compelled to even want to see how they work. It is a NO for me now as long as trading is concerned.
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chain404Full Member
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#9May 12, 2021, 11:44 AM
I trade but not often anymore, when I see some chances but not with futures just like the others. I think these AI analyses are somehow helpful for the starting traders. If they have no other resources and on the learning process. That will give them an idea on what's the look of the market base on how the AI sees it. Not going to be too dependent on it. But if that seems to work for some of the trades, might just use it if they're for free.
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laser_2011Full Member
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#10May 12, 2021, 04:56 PM
After I read some disappointing stories of AI triggering different trades at the same time, I have not really given it a thought to check for the positive side of it. I have felt more comfortable with doing with trade manually, that's the traditional way. To read the chart of Technical aspect of trading is important but to leave that for AI is something delicate. I also think exchanges are in competition of the introduction of AI lately. It is a marketing strategy.
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mark_whaleSenior Member
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#11May 12, 2021, 08:11 PM
I believe most of the AI tools still depend on the Technical Indicator data, thus it's just some "fancy" addition to hoodwink unsuspecting users. Just like an indicator alone won't help you win all the trades, so do those AI analysis tools, and they have misled a lot of traders falling for that AI hype trap. They are good if one is just learning how to interpret technical indicators, but when it comes to making accurate calls, they are not really perfect. If you back test, most calls won't even give you a win rate of over 30% on short time frames.
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coin_sigmaLegendary
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#12May 12, 2021, 11:33 PM
I don't usually use AI for analysis, but AI can help technical analysis with the current price action. If you can provide multiple time frames and chart screenshots, it gives you insight and good analysis. However, if you ask them what position you would take, they are giving you two answers for long and short with a summary. Any of these options are based on my observation and tests; some are good, but mostly they give you bad trades. That's why you don't ask AI where to enter; it is better to plan and analyze the market on your own for better decision-making. Don't always be against the trend. I am more confident in my own analysis. I just use AI sometimes if my brain is a bit confused, and I verify their analysis and insight but still don't trust AI 100% since it wasn't built to make you rich; it was built to make some things easier.
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w1z4rd100Senior Member
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#13May 13, 2021, 02:47 AM
I agree, if you fully rely on AI to analyze the chart of your trade, I'm against it. There are a lot of ways to use A.I., like fetching some data you need to analyze the chart, like volume, inflows, etc., and you can use this data to start analyzing. It's kinda A.I. is just another tool in our analysis chart.
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d4rk5tackSenior Member
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#14May 13, 2021, 06:07 AM
One thing people need to understand is that even if AI are trained and are getting sophisticated the one key thing is that they cannot simply make a future clear prediction. What they are trained on are usually data from the past and to use this information to correlate with what has happened in the market before to determine the next move. For example if the a particular region is actually tested before for like three times and historically on the third test in the past it usually breaks then AI will predict a break out on the third trier this is how it was trained on, but a traditional trader would have considered events like this and still look at the future implications using fundamentals and trade against AI with is findings, If before the month of November had come if you ask AI for Analysis it would have given you a bullish signal because historical it is a bullish month but that’s not the case for a traditional analyst. So I sincerely agree with you that the AI should be use to gather information only for better trading analysis
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alex.shardLegendary
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#15May 13, 2021, 08:24 AM
This is true but what I care more is the trading volume which I can easily get if I check the trading information on the candle sticks. I saw something on the AI analysis which I do see on Coinmarketcap about buying and seeing sentiment where buy can be more than 70% or more most of the time but which will only confuse new traders to think many people are buying. But I get your point, maybe some people can use it for their analysis but myself do not see any good reason I should use it on short term trading.
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tony69Senior Member
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#16May 13, 2021, 09:28 AM
I just imagine how tiring it would be to be going to AI platform each time a trader want to execute and analyze trade, the time to spend using it and fail on a trade thereafter. As GreatArkansas said, using it for chart analysis won't give a perfect result, but relying on it for data gives a trader numerous options to execute a trade the way he wants.
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its_ravenFull Member
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#17May 15, 2021, 09:12 PM
I think OP is talking about the AI analysis found specifically within the exchange, and not those AI chatbots. As for me, I voted No. I don't see any benefit from following an analysis made by AI. It's not perfect nor reliable anyway, so I'd rather use my own decision-making. We shouldn't blindly execute trades purely based on what it shows. That's basically saying you trust AI more than your own judgement.
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t0ny_gangFull Member
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#18May 15, 2021, 11:06 PM
I am not a daily trader but I trade based on the current situation. If the market is down, I just buy and hodl even if the price still goes down. I never use AI analysis and prefer to do manual analysis. That is the way for me to improve my trading skills without relying on AI. But I want to know what AI says based on this current situation. Bitcoin is down and the price seems want to go down for more. How does AI analyze this? I wonder if AI finds or knows how to act. But I see some people use AI to analyze. I just hope that they don't lose in any situation using AI.
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0xN0nceSenior Member
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#19May 16, 2021, 04:31 AM
I don't really use AI analysis with my trading, more of always only a support to get some necessary information and then decide what position I'm going to trade. It's mostly my technical analysis that determines my positions.
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darkviperFull Member
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#20May 18, 2021, 06:37 AM
To be realistic I don't think I can rely on AI analysis to make trading, although one can use their analysis as a support to what they have already analyzed but I don't think they should take it into heart because it could failed them while trading, and nowadays people can't really predicts the market since most times it's also influenced by news and any news can really counter every analysis that you have done while trading. So, as a trader you should be that vigilant to source for information from various places about bitcoin before entering trading and should be that entirely relying on AI to give them information or analysis to follow on.
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