Interesting, also scary...
'So, Interactive Brokers has announced what they call Autonomous Trading.
Basically, clients can allocate money to a separate “AI Partition” and authorise AI to submit supported orders without approving each one. (What could possibly go wrong!)
Essentially, give it a trading pot, instructions, and boundaries, then let it operate within those.
In some ways, it’s familiar territory, right?
An Expert Advisor on MT4 can already trade for you...
The difference here is that AI kinda makes the rules up as it goes along, gathering data, and making decisions for you, rather than a fixed if-this-then-that type rules an algo uses.
Now, that’s cool and all, but it got me thinking…
If lots of retail traders use similar AI models, feeding them similar information, and asking similar questions… how different will their trades actually be? 🤔
“Find a decent breakout.”
“Buy the pullback in an uptrend.”
“Use ICT models to trade a liquidity grab.”
“Put the stop somewhere sensible.”
And a lot of AI training draws on existing material… books, websites, and all sorts of other sources. Plenty of conflicting opinions in there, obviously, but some trading ideas come up again and again.
So if people use similar models and give them similar instructions, could they end up making similar decisions?
Which begs the question:
Could thousands of people asking similar assistants to find a “high-probability trade” end up creating some fairly recognisable behaviour?
And if they do… could other traders (or AI!) learn to spot it?
Imagine watching a breakout and wondering whether a crowd of AI-assisted accounts is chasing the same move, with similar ideas about where to bail out…
Cos the very first prompt I'd be using if I was ever going to trust AI to trade is
“Come up with a high probability trading model based on well-known assumptions”
'We spend plenty of time thinking about where human traders might get trapped.
Perhaps understanding how retail AI responds to certain conditions eventually becomes another part of that work…
Or maybe I’m getting ahead of myself.
Time will tell…
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Interesting, also scary......[more]