Building An AI-Based Algorithmic Trading Strategy

For decades, trading has been done primarily by humans, some of them crowding at the busy exchange, others picking out the best assets to buy and sell from the office. Today, however, a major share of market transactions is in fact conducted by sophisticated algorithms. In fact, just a few years ago, algorithmic trading was reportedly behind 60-70% of transactions on US financial markets, although their current share is probably lower. In itself, however, algorithmic trading is not necessarily something particularly new: in fact, the widely spoken-about practice known as High-Frequency Trading, one of the prime examples of top-notch algorithmic strategies, stems from the early 2000s. What is new these days, however, is a fintech trend that holds a promise of amplifying the success of algo-traders by giving them extra tools to improve the performance of their models.