Bots are critical a critical tool for retail investors
The thing about the future, where robotic super traders battle over micromovements in stock price, is that it’s already here. With access to algorithmic trading bots a click away, we could be seeing the fall of human investors and the triumph of artificial intelligence.
Algorithmic trading bots are programmed to buy and sell when they detect preprogrammed conditions and can execute pretty much any trading strategy. They have been used by professional traders for two decades, and these firms have taken them into the crypto markets too.
Now, a new crop of accessible crypto trading tools has hit the market, made with retail clients in mind. I know — I have built several of them. Currently, I’m working on a system that helps neophyte investors find their own risk preferences based on their previous trading and investing data.
The uptake of these bots could have an outsized impact on the crypto market going forward, given that retail accounts for up to a quarter of crypto trading volume. And what is most interesting here is that this could signal a democratization in market access and participation.
Related: The reason bots dominate crypto gaming? Cash-grubbing developers incentivize them
If this is to happen, then access to trading bots and other specialized tools must be combined with open education. Re-creating the gated system where only “accredited” investors are allowed access to the crypto markets while everyone else is sidelined due to lack of education and capital is elitist and regressive.
It’s unfortunate that financial education isn’t taught in schools, leaving many people at the mercy of sophisticated professionals and outright scammers. Trading bots, combined with proper education, is one step toward leveling the
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