AI in Algorithmic Trading: The Revolution Has Begun

AI in Algorithmic Trading: The Revolution Has Begun
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6/29/2024
StockSharp


Artificial intelligence is gradually permeating all spheres, including algorithmic trading. We plan to release various AI-based features, as this trend cannot be ignored. This article discusses how AI is developing in the field of algo trading and the changes it brings.

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Impact of AI on Algorithmic Trading


1. Reduced Need for Connector Developers


With the development of AI, the need for connector developers is decreasing. Basic connectors, such as those for cryptocurrency exchanges, are easier and faster to create through AI with proper model fine-tuning. If AI learns to adapt in real-time, it can automatically track errors and protocol updates, promptly adjusting the code.

Screenshot of the process, showing how a connector adapts to a changed crypto exchange protocol:

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One of the key advantages of AI is the significant acceleration of development. In our company, we use AI to create connectors, which reduces their development time by several orders of magnitude. Previously, writing and testing a new connector could take several weeks, but now it takes only a few days. This demonstrates how AI can transform processes, increasing efficiency and reducing costs. We will write a separate article on our approach to developing connectors through AI.

2. Strategy Writing


Almost all developers engaged in custom strategy writing may disappear as a class. AI can generate individual strategies faster and more accurately than a human. In algorithmic trading, strategy creators are often not professional programmers (which we understand, offering a solution based on Designer). Therefore, replacing this direction with AI is already possible. Users will be able to receive personalized solutions tailored to their trading style and preferences.

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3. Disappearance of Popular Open-Source Projects


As AI develops, the need for popular open-source projects based on ready-made robots or strategies will decrease. It will be easier for people to ask AI to create a suitable solution for their needs and the software they are familiar with, rather than searching for a ready-made one and trying to adapt it.

4. Strategy Rental Services and Purchase of Ready-Made Robots


Creating personal strategies through AI will become easier than purchasing ready-made solutions or renting strategies. Users will be able to generate their strategies considering their personal preferences and market specifics.

5. Level of Programming Knowledge and Its Necessity


The question of the necessity of learning programming is becoming increasingly relevant. AI can already generate code better than many average programmers. This raises the question of why spend years learning when a machine can perform the same tasks faster and more efficiently.

6. Disappearance of Juniors in Algorithmic Trading


With the development of AI, juniors (entry-level developers) in algorithmic trading may disappear. Simple tasks that were previously given to newcomers for training are now performed by AI. This makes entering the profession more challenging, and tasks for seniors are becoming increasingly complex.

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The Future of AI in Algorithmic Trading


In the future, AI is expected to become increasingly integrated into algorithmic trading, offering more advanced and tailored solutions for each user. Tracking protocol changes, writing unique strategies, and creating new connectors will all become commonplace. The role of humans in this process will be to control and adapt AI for specific needs and to solve complex tasks that remain beyond the capabilities of machines.

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Conclusion


In conclusion, it should be noted that the use of AI in programming opens up many opportunities but also requires adaptation and new approaches to human resource management. We are on the brink of a new era, and our future depends on how we can integrate these technologies into our daily work.



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