An AI Trading Bot functions like a highly sophisticated assistant who continuously monitors financial markets for you. Rather than having an individual monitor price charts over and over again, the bot assesses price changes, volume levels, and historical data on the same timeframe, then relies on real-time data from the market and compares it to historical data to determine how things would have normally played out in these types of scenarios.
When a price increases or decreases, the bot will assess how quickly (rate) it is moving as well as how much momentum the price has. The bot will also take note of tiny movements that most traders would overlook, particularly during busy market hours. It will then make a determination on whether to purchase based on whether the market is providing you with an opportunity to perform a purchase or an opportunity to sell.
Bots do not experience fatigue, emotion or confusion due to unexpected events. The bot follows predefined rules and reacts with incredible speed based on changes in the market. Traders will benefit from not being forced into making late and/or emotional decisions because of the speed with which they can get real-time analysis of the market, allowing them to take action as soon as the market is changing.
For beginning traders, AI will automate much of the work they would otherwise have to do by watching charts for hours. Experienced traders can save time while improving their cyclical speed by allowing the bot to make trading decisions far quicker than a human could. All of these benefits lead to traders being able to use market data in real-time to not only make timely decisions regarding trends and prices, but also increase overall profits.
