Advantages of AI-Driven Trading

• Speed and Efficiency: AI can process and react to data in milliseconds, outperforming human traders.
• Reduced Emotional Bias: AI systems make decisions based purely on data and analytics, avoiding emotional pitfalls.
• Data-Driven Insights: Leverages vast amounts of data for better predictions and improved strategies.

Challenges and Risks

• Model Overfitting: AI models may perform well on historical data but fail in live trading due to unseen market conditions.
• Black Box Problem: Complex models like deep learning lack interpretability, making it hard to understand why specific trades are made.
• Market Volatility: AI-driven systems may amplify market swings, especially during periods of high volatility.