Impact Of Artificial Intelligence And Machine Learning on Trading And Investing

I will try to explain what I mean by this: traditional technical analysis is an unprofitable method of trading because strategies based on chart patterns and indicators draw their returns from a distribution with zero mean before any transaction costs. Traditional technical analysis, i.e., chart patterns, some simple indicators, certain theories of price action, etc., was not effective to start with. Some developed algos and AI expert systems to identify the formations in advance and then trade against them, causing in the process volatility that retail traders, also known as weak hands, could not cope with. However, some quantitative technical analysis methods often work well, such as mean-reversion and statistical arbitrage models, including ML algorithms that use features with economic value.