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+--- Thread: What is an AI trading bot, and how does it work? (/showthread.php?tid=81291)
What is an AI trading bot, and how does it work? - aanaethan - 10-08-2025
An AI trading bot is a software program that utilises artificial intelligence (AI) and machine learning (ML) to automate trading in financial markets, such as stocks, forex, or cryptocurrencies. Unlike manual trading, the AI Trading Bot can make decisions instantly based on large amounts of data, without human emotions affecting the outcome. It works by:
- Collecting market data: The bot collects real-time data from the stock, cryptocurrency, and FX markets.
- Analyzing patterns: It uses AI algorithms to identify patterns, market changes, and prospective trading opportunities.
- Making decisions: The bot determines whether to purchase or sell assets using specified methods and AI forecasts.
- Executing trades: The bot places orders on trading platforms without requiring operator involvement.
- Learning and Improvement: Some AI bots continually learn from previous trades in order to enhance their strategy and results.