Leveraging AI for Smarter Grid Trading



GRID trading is one of the most popular ways to utilize automated trading systems to achieve consistent profitability by employing a reliable strategy that can be performed by robots quite well. In fact, some finely tuned GRID bots outperform experienced human traders and deliver impressive results in the long run. While it is possible to create a good system without any additional help from experts, many retail traders struggle to produce something that works better than they can do themselves.

An interesting yet inevitable solution that the industry arrived at is to employ expert AI systems and make a GRID bot better in many ways by allowing advanced machine learning algorithms to identify obscure price action patters and adjust the parameters according to its deep understanding of the market.

Artificial intelligence is quite good and makes automated GRID trading efficient, but we are still far from allowing any AI system to make huge financial decisions without any input from users. However, smaller adjustments and real-time tuning of an autonomous system is something that a machine can do very well. The future of AI in GRID trading is certainly bright, but even now we have something tangible to work with!

How AI is transforming GRID trading

The blockchain technology is something that can be used in many industries to a great success. For example, distributed networks are used to control energy markets on the level of consumption to reduce waste and produce better outcomes for neighborhoods. Strategically distributed energy resources provide a higher quality of life to everyone.

Today, we have microgrids controlled by smart systems and can make electrical grid modernization cost-efficient by achieving grid parity in the eco-friendly energy industry and introducing alternative energy sources into existing grids. By implementing demand response in local electrical networks and allowing blockchain networks take over to control everything, we can build a much better, energy-abundant future.

The blockchain technology has earned respect in many other industries including logistics, transportation, distribution, sales management, and more. It is a novel approach to building data bases and creating something reliable in the world of vulnerable information streams. Interestingly enough, Bitcoin was the first step to many of these innovations.

Today, renewable energy trading and sustainable energy in general depend on the overall advancement of the blockchain tech in many regards. It is not necessary for decentralized systems to be prevalent in the industry to reach the target level of energy efficiency and slow down the climate change, but it would be a good addition!

In a way, by trading cryptocurrencies, we are helping the world to get to a better place in terms of using energy and building better infrastructure. Unfortunately for some academics, the main application of the blockchain technology is in the world of finances where distributed ledgers are quite an interesting proposition.

Despite the efforts from the scientific community and many blockchain enthusiasts, the vast majority of people are interested only in the speculative nature of the market for cryptocurrencies making it hard to believe that anything else will get into the spotlight in the foreseeable future. As more people flocked to the crypto market, the level of volatility increased leading to a very chaotic trading environment.

Just from 2010 to 2015, the number of retail traders increased by several fold, from thousands to millions. Automation started becoming quite important as people tried to use bots to battle the uncertainty and introduce stability in their trading routines. Just a couple of years ago, we couldn’t imagine that artificial intelligence will be so important for the crypto market and many other financial domains.

Just how AI is optimizing energy grids and making them more efficient, it found its way to the world of finance and shapes the future of retail trading. Expert AI in energy trading, asset exchanges, investment, and many other fields is taking over at an incredible speed making us all question if we are already behind those who are learning how to use artificial intelligence right now.

Benefits of AI-powered GRID trading

The idea behind algorithmic trading is to counter the volatility and uncertainty of the crypto market by introducing a consistently performing strategy like GRID trading that will follow an algorithm to the letter regardless of market conditions. A grid bot uses the same approach as a DCA trading system and places buy and sell orders separated by certain periods. By avoiding unnecessary losses and securing profits (with delayed orders), these systems can be quite productive.

How can AI make these systems better?

  • Make systems more flexible. Some case studies of successful AI-powered GRID trading allow users to choose the risk style and make some adjustments before they launch bots. Since many retail traders often lack the courage and expertise to dwell into uncharted territories and experiment, it is a good idea to offer them some variety from the get go.
  • Real-time adjustments. Market conditions can change quickly and dramatically whether you track them or not. AI systems can make small corrections to the strategy if something is changing. For example, a smart grid trading system will disable bots when market becomes too volatility or adjust delayed orders to account for sudden trend alterations. You don’t even have to be there to oversee these adjustments.
  • Machine learning is better at pattern recognition. Think of DALL-E and Midjourney. These expert AI systems can recognize patterns in pixels of millions of colors and use them to paint photorealistic pictures without understanding the context. Robots are way better at identifying patterns and applying them to various processes to better them. Deep learning is still in its infancy yet it can outperform top surgeons, strategists, and chess players. It will soon outperform top financial analysts too.
  • Data-driven market analysis. AI systems have access to powerful computational resources and can use them to vivisect tons of information. Contemporary data analytics munch through incredible amounts of metrics, statistics, and parameters to find many connections between them which would be completely unnoticed by a human expert.

With the current pace of advancement in the trading automation industry, a typical AI trading bot will be performing on the level of the best retail traders within the next couple of years. We strongly believe that the future of the crypto market is in the hands of those who learn how to utilize expert AI systems today, when they are still being developed.

Amazingly, it is not hard to learn how to use AI for grid trading as many companies like WunderTrading and CryptoHopper are rolling out their AI-driven products. From complex statistical arbitrage systems to grid bots, everything will be soon controlled by extremely efficient expert AIs.

Risks of AI-powered grid trading

While the current situation in the world of AI paints a beautiful picture of tomorrow, at which many look through rose-tinted glasses, there are still many issues that we need to sort out before using artificial intelligence without any supervision.

Here are some general risks associated with implementing expert AI systems in financial systems:

  • Emergence is a phenomenon that many researchers cannot explain. It refers to the appearance of new unintended features and functionalities that some machine learning systems develop without any inputs or incentives. While it may sound awesome to tech geeks, any unforeseen change in the behavior of an AI system can be detrimental to the overall performance of the system.
  • Hallucinations were first noticed by ChatGPT developers. Sometimes, a machine cannot find a suitable answer to a question or a way to solve a problem. Instead of thinking outside of the box to come up with a novel solution, it instead just makes up on up on the spot. It can be funny when we are dealing with high school essays and news articles, but when applied to crypto trading, results can be devastating.
  • Data sourcing. The quality of information fed to a machine learning system must be of the highest level if you want to build an efficient AI. However, the market is full of contradicting data, ballooned metrics, and false information making it hard for a ML system to produce high-quality outputs. Some companies will stumble upon good sources of data and filter out noise. Some will have expert AI systems that cannot perform well and will ruin many portfolios.
  • Service providers. It is hard to identify reliable automation vendors with good artificial intelligence systems in place. The best AI tools for GRID trading are yet to be found as we are collecting data and testing various instruments offered by hundreds of startups and established developers. It will take time until we finally find products.

Some things are completely outside of what we can control. However, you can focus on choosing the right automated trading platform and experimenting with AI-driven trading solutions to try and build profitable grid trading systems with toolkits available to retail traders right now. As mentioned previously, only those who are not afraid to test AI today will be positioned to take advantage of the technology tomorrow.

AI for GRID trading is spearheading the change with many automation providers aiming to improve one of the safest products first. Some companies go beyond and try to build unique products like AI-assisted statistical arbitrage systems capable of managing large portfolios by changing their composition and focus according to changing market conditions. If you can use AI to experiment with finances, do it now and do it safely.


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