Can AI replace human trading?

Author: Daoshuo Blockchain

OpenAI recently launched the latest version of GPT.

This time, it showed users a comprehensive system that fully integrates vision, hearing and other abilities, and also has the ability to express emotions. This makes GPT more and more like a real person and can become our partner------The founder of Khan Academy showed a video of using GPT to tutor children in mathematics.

The effect is much stronger than that of humans.

All of this makes people feel more and more the power of AI, and more and more convinced that more occupations will be replaced by AI. For example, many people say that AI can completely replace traders for trading.

I also did trading for a period of time in my early years, so I have a certain understanding of the process and ideas of this method.

Specific to the transaction of crypto assets or other financial assets, we generally operate according to the following method:

Step 1: Pull out all the data related to the transaction, such as transaction volume, transaction price, transaction time, etc.

Step 2: Use the existing model to calculate various technical indicators for reference based on the data obtained in the first step;

Step 3: Comprehensively judge the next trend based on various technical indicators.

At first glance, among these steps, it seems that the second and third steps will be the possible focus of artificial intelligence.

In the future, artificial intelligence is likely to create new technical indicators based on historical data more efficiently and quickly, so as to quickly iterate in the second step and surpass opponents.

Similarly, in the future, artificial intelligence will also use the new indicators created in the second step to iterate the evaluation system more efficiently and quickly, so as to more accurately predict the next trend and surpass opponents.

However, if you think about it carefully, the second step of how to construct technical indicators and the third step of how to construct the evaluation system are still constructed by the human brain. Will people in the future be able to jump out of the existing framework and use new rules to construct technical indicators and evaluation systems?

If so, human creativity and imagination will be the key.

If not, to win in such a competition, I am afraid the most direct way is to roll up AI models, roll up computing power, and roll up data. But none of these three elements are advantageous to retail investors. Therefore, in the future, this trading method will most likely be monopolized by institutional traders, and retail investors participating in the competition in this arena will most likely be "cannon fodder".

Even so, does that mean retail investors have no chance at all?

Of course not, retail investors can completely open up another battlefield to avoid this disadvantage, and not compete with AI in short-term trading at all, but make value investments based on fundamentals, grasp the long-term trend of assets, and ignore short-term price fluctuations.

Today, I share with you my views on AI and trading completely out of inspiration.

In this new era when AI is coming, as human beings, we should actually reflect on ourselves more and more and re-understand ourselves.

I don’t think the arrival of AI will threaten humans. It will threaten the existing low-tech and high-repetitive jobs of humans, which are generally not creative.

For jobs that require creativity, AI is not easy to replace. In addition, humans can also open up new battlefields, new fields, and new opportunities. What is most needed for these is creativity.

Creativity is the fundamental driving force that distinguishes humans from all living things and drives the continuous progress of human society.

People who fully unleash their creativity will not only not be replaced in the future, but will create more value and gain more wealth.

To unleash our creativity, we must exercise our independent thinking, establish our own independent thinking system, construct our own independent analysis framework, and actively explore problems and question answers.

Otherwise, we are more likely to become slaves and be cut off in the AI ​​era. AI is more efficient, more covert, and less detectable than its peers when it comes to deceiving us. Mr. Buffett said at the shareholders' meeting that he thought of fraud regarding AI.

AI is not scary. What is scary is that we have lost our creativity and independent thinking.