Algorithmic Trading Using Artificial Intelligence and Machine Learning Algorithms

Abstract

Algorithmic trading conducts trades quickly and effectively using algorithms that follow a trend and predetermined set of instructions. In addition, algorithmic trading reduces the influence of human emotions on trading, leading to increased market liquidity and more precise and accurate trading. Automated trading for day-to-day trading, depending on varied market situations, the bot will automatically trade user strategies in addition to its own algorithms, providing the best trade turnover, reducing transaction costs, and ensuring considerable profits for concerned users, whether an institution or an individual. The uncertainties in traditional trading led us into algorithmic trading, which is now recognized as a human aid. The study also discusses the fundamental distinctions between discretionary trading and algorithmic trading, how algorithmic trading actually uses artificial intelligence technology, the top trading strategies used in algorithmic trading, the key benefits of implementing them, and why conventional traders should think about switching to algorithmic trading.