It was a simple tool to confirm certain trends for traders a decade ago, trading tools have become more and more common in financial markets around the world today. The increasingly complex algorithms thus tend to replace human traders by their efficiency and their capacity to take into account a larger number of parameters, of history of the evolution of the prices, of the global trends of the markets …
Automatic trading tools allow you to spot market changes in record time of a few milliseconds, launch currency transactions just as quickly, and monitor multiple indicators continuously for an almost instant response.
Now, automatic trading alone accounts for 60% of daily transactions in the world and almost 80% of exchanges on Wall Street alone.
Since 2008 and the international financial crisis, banks have sought to replace their human traders with more reliable algorithms, capable of making more reasonable profits, but on much shorter deadlines and more regularly to play on the mass effect. . The layoffs in the world of traders contribute to the investment in the development of increasingly efficient algorithms.
Proof that these algorithms have gained popularity and functionality: they are even accessible to individuals who wish to engage in speculation. Many platforms are now offering automatic trading tools.
Good news for traders, these algorithms are not yet capable of taking into account human factors and geopolitical conditions or current events to allow us to anticipate certain valuation or devaluation of stocks. Despite everything, artificial intelligence could take over on this subject by taking advantage of Big Data to take the temperature of markets and upcoming events and thus anticipate certain variations (financial scandals, announcement of a smartphone or revolutionary product, political decision impacting the international market, death …).
Trader, an endangered profession? Probably, but like dozens of other professions that will not resist the rapid evolution of technology, especially in the fields of robotics and artificial intelligence.
