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AI in trading is not merely an idealistic concept anymore. AI is expected to learn and execute more efficient decisions and perform more than routine and repetitive tasks, which have been executed successfully by algorithmic trading tools for decades.
A new market player claims to have found the missing link between algorithmic trading and AI to enable an (almost) fully automated process of analysis for the cryptocurrency market.
A Look Back at Trading and How AI Comes Into Play
Artificial Intelligence might sound like a buzzword used by many to throw the inexperienced off guard – indeed, merely two decades ago the concept only existed in movies. Today, the novel technology has entered many areas of our lives. From facial recognition, healthcare, and even finance and investing, AI has yet to start unveiling its vast potential.
In trading, AI has the difficult task of adjusting to the dynamics and the overall characteristics of the modern markets. Decades ago, trading was pretty much reserved only to a small group of companies and individuals. The forces driving it were based on solid data fundamentals and emotion did not play such a decisive role as it does today. Algorithmic trading was thus sufficiently reliable in guiding traders towards the right decisions.
Today, the situation has changed dramatically. With more information available to the general public, the forces dictating the prices have shifted and are now including other variables in the equation that were not prevalent before. Emotion, among other things, plays a decisive role in how the market moves – even more so when it comes to crypto.
This is precisely where AI has to come into play and offer a reliable way of reading all factors influencing the important variables – even if they are based on abstractive aspects such as emotion. What is even more important though, AI will have to dive into the deep sea of data that we have available today and be able to organize it and then provide the trader with the necessary information to execute profitable trades.
It seems the burden that falls on the shoulders of AI might prove to be a lot to handle. Luckily, some have long started to stretch their boundaries and are already coming up with solutions that might change the way we trade forever.
Dohrnii Dives Deep Into the Depths of AI for Crypto Trading
After years of research in AI, the swiss non-profit Dohrnii Foundation has come up with several unique applications of the technology that are suited to the specifics of the cryptocurrency market. The team, which consists of fintech experts and traders with decades of experience, has been researching some of the most sophisticated trading software on the market that is available only to the risk departments of the biggest investment companies. The Dohrnii Foundation found out that there are numerous synergy effects between AI and blockchain – both technological and structural.
DeFi protocols and decentralized exchanges are considered by many to be the future of trading. Indeed, they offer an unmatched degree of transparency by removing any intermediaries that can be the cause for asymmetric power imbalances, which always result in potential disadvantages for the user. High fees imposed by traditional trading platforms and exchanges, denied transactions or even a traceless loss of funds are all scenarios that the average trader fears.
The Dohrnii project is a full-fledged investment ecosystem for the cryptocurrency market. It combines a rich set of AI-based market analysis tools and a trading academy that provides a high level of education to its members. Traders can place automated orders that are then executed through 3rd party exchanges via secure APIs. The decentralized platform gives users access to the back-end analysis AI modules – using these comes at a fee that is paid in the native utility DHN token. Traders have access to advanced price and trend predictions, portfolio adjustments, and many more. Users can also earn DHN tokens while they progress in the learning programs specifically designed for their level of experience.
A common fundamental flaw of traditional trading platforms and exchanges is that they regard all investors equally, while the differences in the risk profile and budgets greatly dictate how a trader should build their portfolio. By designing a personalized experience for every separate trader based on the onboarding and their continuous interaction with the platform, Dohrnii makes sure they can trade according to their specific profile and thus maximize their bottom line performance.
Moving towards a new age in trading
The Dohrnii project is diving deeper into the combined use cases of AI and blockchain than anyone else before has and positions itself as a pioneer in an industry waiting to explode. With blockchain and cryptocurrencies increasing in popularity and facing widespread adoption, it is only a matter of time before the new age of trading platforms arrives at our doorstep.
Dohrnii is currently conducting its first funding round and is offering lucrative conditions for early adopters. The full rollout of the ecosystem is planned for 2022.
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