Artificial Intelligence is everywhere! It is transforming every sector, especially the Fintech industry, from healthcare to education, supply chains, and beyond. Although Fintech itself is creating such a big impact on how financial institutions operate, AI is just acting as a catalyst in this transformation.

Customizable trading software is one such great example that has revolutionized trading for brokerages as well as traders and investors; AI is taking things to another level. Let’s understand the role of AI in customizable trading software in more detail in this article. But first, let’s learn a little about customizable trading software.

Understanding Customizable Trading Software

Customizable trading software is a computer program or trading solution that comes with a great degree of customisation control to modify it as per the trading requirements. Thus, unlike rigid off-the-shelf solutions, these trading platforms can be easily optimized through configurable settings, drag-and-drop modules, and more.

Key features of Customizable trading software

Advanced customizable trading software like that offered by Shark Technologies consists of the following features: 

• It provides access to multiple asset markets such as Forex, crypto, metals, energy, and more.
• The platform has a smart trading interface design with enhanced navigation and easy tool access.
• The dashboard of customizable trading software, consisting of widgets, charts, and more, can be personalised.
• It contains a robust risk management system that consists of tools like margin trading, portfolio diversification, and more.
• This trading software provides direct access to historical trading data, live price alerts, current market news, live market data, and more.
• The trading platform can be accessed from a mobile, tablet, computer, or other device.
• It is integrated with secure payment gateways for quick and easy deposits and withdrawals.
• This trading platform has advanced analytics tools to evaluate past performance, consider risk parameters, and improve trading results.

Along with the components listed above, customizable trading software includes Algorithmic Trading features, which are powered by AI technology and automate trades based on predefined trading strategies.

How AI for Customizable Trading Software Works?

In addition to Algorithmic Trading, AI technology helps trading software support the following approaches:

• Arbitrage trading with AI can be used to benefit from price discrepancies of assets across multiple markets or exchanges.
• AI is employed to carry out High-frequency Trading, in which trading software carries out multiple trades in seconds by taking advantage of each market fluctuation.
• Quantitative trading methods can use artificial intelligence to analyse massive amounts of market data using mathematical computations and various statistical models.
• AI-powered bots evaluate market conditions, assess risk, and carry out trade execution. 

Key Roles of Artificial Intelligence in Customizable Trading Platforms

Leveraging its components, such as data analytics, machine learning (ML), natural language processing (NLP), and more, AI assists the customizable trading software in the following ways:

Live trading and quick decision-making

Financial markets are dynamic, and the asset prices change in a matter of milliseconds. Thus, it is nearly impossible to spot and trade on each beneficial opportunity. However, with the help of AI, trading software can assist traders in making every profitable trade by responding instantly to price fluctuations and volatility.

Personalized Trading Experiences

Customizable software equipped with AI tools simply maximises the personalisation parameters for investors and traders. AI understands the platform users’ trading preferences and only displays data that they are interested in. This technology analyses historical trades, habits, and other factors to help the platform understand the trader’s skill level and improve accordingly.

Market Prediction and Pattern Recognition

AI technology excels at analysing vast amounts of market data and live price feeds. By understanding market patterns, it can compare them with historical data to identify changes. This allows AI to recognise repetitive market patterns and effectively predict future price movements.

Smarter Algorithmic Trading

Trading bots existed long before AI and were very useful in assisting traders and investors in their trading endeavors, but AI brought about significant changes. AI-powered trading bots not only execute trades but also improve their performance by constantly learning from previous results. Furthermore, AI aids in improving risk management strategies based on market volatility and economic indicators.

Natural Language Processing For Better Analysis

Trading isn’t just about analyzing market data, but it’s also influenced by social media, breaking news, and real-time sentiment. AI technology, using Natural Language Processing, can read news and analyse social media platforms such as Twitter and Reddit to determine market sentiment. Thus, traders would gain more insight than from simple price chart analysis.

Benefits of AI Integration in Customizable Trading Software

Here are some of the benefits of AI integration in customizable trading software:

• Traders of all skill levels, from beginners to experts, can engage in professional trading with the help of AI technology.
• There is no need for guessing, as the AI’s predictive analytics allow better decision-making.
• Automated bots carry out instant trade execution without wasting any beneficial opportunity.
• Traders can avoid mistakes resulting from manual trading, such as misreading charts or entering wrong orders, due to automated trading execution.
• AI not only executes trades but also learns from past trading patterns, continuously improving its performance over time.

Wrapping Up

AI, which was first introduced as an enhancement to customizable trading software, has quickly become a critical component. AI-powered trading platforms not only execute trades but also learn and evolve throughout the process. However, this is just the start; there is more to look forward to in the future.