Can You Beat the Market with AI Trading? A Data-Driven Answer

Over the past few years, we have seen a significant rise in the use of artificial intelligence in trading. Simply because AI helps to predict market trends, analyze data, and assist investors in making the right decisions. Something that manual traders struggle to achieve. 

But the big question on everyone’s mind is: Can AI actually beat the crypto market? 

In this article, we’ll explore how AI, with the help of machine learning, is transforming crypto trading by using data from the last three years. Later in the article, we’ll compare the data with AlgosOne and see why this easily accessible and beginner-friendly trade-automation bot outperforms everyone else.

Difference Between Manual vs. AI Trading

To understand whether AI trading can beat the market or not, it’s first important to understand the differences between manual traders and AI trading bots. 

1. Beginner Friendly

Trading cryptocurrencies is not beginner-friendly, and it can take anywhere from 1 to 3 years for a trader to actually become profitable. This is because manual traders have to understand various market factors that affect prices throughout the year, and they also need to master different strategies to a high level of perfection. 

On the other hand, AI trading bots are trained on vast amounts of data. They follow strict guidelines on which they are trained, and are able to readily make a profit the moment they are told to do so, depending on whether the market is following the rules on which the bot is trained. 

2. Decision Making

Another major hurdle faced by manual traders is that, when it comes to decision-making, they often follow their emotions rather than sticking to their own time-tested strategy. 

AI, on the other hand, can process millions of data points in real-time and then make a decision based on price history, news sentiment, and social media trends. Another important thing about AI’s decision-making is that there are no emotions involved; it doesn’t panic-sell, nor does it get greedy. 

Rather, AI trading bots only follow predefined rules, adapt to shifting market trends, and then place a trade. Additionally, AI also has the ability to execute trades in milliseconds, which is many times faster than any human can. 

3. Risk Management

Risk management is another important part of crypto trading, which many manual traders often struggle with. Either traders become overconfident and place a trade without any risk management in place, thinking the market will move in the way they think it will. Or they overtrade, thinking they can turn their small losses into big wins. All of this usually ends up in a big disaster. 

On the other hand, when it comes to risk management, nothing can beat AI trading bots because their predefined programming ensures they set precise stop-loss and take-profit orders at optimal levels. It also adjusts itself to shifting market trends at a much safer pace than manual traders and successfully reduces unnecessary exposure or risk. 

Statistical Comparison: Manual vs. Automated Trading

To understand whether AI trading outperforms manual strategies or not, we have analyzed performance data from the past three years from different sources. Here’s our findings: 

• Annual Return: On average, a manual trader makes a return anywhere between 5% and 30%. This return is largely based on a trader’s experience level and the hours per day he dedicates to trading. In comparison, AI trading bots give a return of about 25% to as high as 40%. 
• Trade Win Rate: The average trade win rate of a manual trader is around 40% to 55%. Whereas, the average trade win rate of an AI trading bot is around 60% to 80%. 

Considering the data, it’s quite clear that AI is consistently outperforming manual traders and even traditional algorithms. 

Why Does AlgosOne Stand Out?

While AI trading systems are designed to solve problems faced by manual traders, they are often reserved for hedge funds and institutional investors. Gaining access to them can be extremely expensive since they’re reserved for a few and are handled by financial experts who ensure everything is running smoothly. Luckily, AlgosOne is changing that. 

It is a cutting-edge AI-powered trade automation bot that executes trades automatically without human intervention. Its combination of machine learning, real-time adaptability, human expertise, and emotionless trade execution gives it a massive edge and allows it to execute trades with exceptional accuracy. 

So far, AlgosOne’s trade success ratio is higher than 80% and is expected to rise even further since it will have more data to improve itself. Due to its mission to provide everyone access to a Grade-A financial tool, users only need to deposit $300 to get started. They do not need years of trading experience or any coding knowledge because everything else is handled by the bot. 

Here’s how AlgosOne’s AI trading bot delivers results:

1. Data Analysis

First, AlgosOne’s trading bot scans the market 24/7. It tracks price movements, whale activity, news, financial records, and social media sentiment. 

2. Pattern Recognition

Second, AlgosOne’s financial experts and trading bot recognize patterns and trends revolving around the data the trading bot has scanned.  

3. Automated Trade Execution

After the approval of the AlgosOne financial team, the AI-powered trading bot then executes trades with extreme precision. 

4. Risk Management

During this entire process, AlgosOne guarantees your profits are secured. It uses built-in risk management tools to protect your investments and minimize losses. 

Segment 4: Conclusion

With the passage of time, manual traders are fading as AI trading bots prove to be faster, smarter, and more disciplined. While there’s no trading system that’s perfect, and the ones that are better unfortunately aren’t accessible to everyone. With AlgosOne, that’s changing because it gives retail traders a chance to achieve their financial goals without requiring years of market experience. 

You can also experience risk-free, consistent profits by signing up for AlgosOne today!