Since the first days of Artificial Intelligence’s rapid expansion into various industries, the financial sector has been one of the leading adopters of these technologies. In this field, AI-driven algorithms are seeing an ever-widening variety of applications, including risk management, predictive analytics, and customer service automation. For example, according to recent research, algorithmic trading in the U.S. stock market constitutes 60–75% of total trading volume. That shows that AI-based tools have already established themselves as a crucial element of modern trading and investing platforms.
In this article, the experts at Octa, a globally recognised financial broker, summarise the current market landscape for AI-based trading tools. Building on that, they present the results of a traders' survey showcasing the importance of generating lessons learned from one's trading sessions and look at OctaVision, a new AI-based alternative to traditional analysis methods.
As governments and businesses exponentially increase their spending on AI research and adoption, AI-based solutions rise in popularity worldwide. However, the optimal practices and approaches to using AI-based technologies are yet to be decided, as AI adoption shows varying scale and efficiency in different sectors.
Applications of AI in trading
In trading, a field where AI-based technologies are becoming increasingly popular, prediction and analysis go hand in hand. For many retail traders, assessing their previous orders is one of the main prerequisites for improving their decision-making skills.
According to Kar Yong Ang, a financial market analyst for an international broker Octa, AI has already gained a solid foothold in trading: deep learning frameworks generate market signals, dedicated bots allow traders to automate order execution, and AI-based solutions support them in developing and backtesting their trading strategies. ‘Even though various AI- and ML-based tools are already used for trading on financial markets, the broader adoption of these technologies in trading is yet to come as many traders prefer to fall back on less advanced approaches, missing out on this opportunity’, Kar Yong Ang said.
Assessing one's trades: a way to improve your trading results
Octa has conducted research to gauge traders' attitudes towards reviewing their trades. Out of 821 respondents, 85% marked this self-assessment as necessary, while 70% already practise it regularly.
One out of three survey participants said they analysed their past trades using third-party services instead of within the trading platform. More than half don't use any dedicated analytical tools at all, making do with manual research. Only a few traders are lucky enough to have a trusted mentor who can break down their sessions and provide constructive, impartial feedback, allowing them to improve by not repeating the same mistakes.
To address this pressing issue, Octa recently launched a new feature built into its proprietary trading platform, OctaTrader. From now on, OctaTrader clients can analyse their order history with OctaVision. This embedded AI-based toolkit offers personalised recommendations and allows traders to level up their decision-making skills with each session.
OctaVision: an AI-based recommendation engine as a mentor
Created as a balanced combination of human expertise and AI's data-processing prowess, OctaVision allows you to analyse an individual closed order or a whole trading session in bulk. While OctaVision uses a built-in AI engine to create data-driven unbiased recommendations, it is also anchored in extensive market knowledge of Octa's expert traders who oversaw the development and content creation process, double-checking each outcome against their hands-on experience.
As a detailed and personalised source of trading feedback, OctaVision is indispensable as an objective, impersonal mentor who helps you hone your trading skills step by step. OctaVision uses plain language to point out strengths and weaknesses in your decisions, substantiating the assessment with your statistics while providing personalised, actionable advice.
OctaVision has already been deployed for all of OctaTrader's clients in all regions. The toolkit generates recommendations in English and is currently available for the trading platform's desktop version.
OctaTrader currently offers two proprietary embedded toolkits that empower traders and help them achieve consistent results. While an analytical hub called Space provides timely market insights and serves as a decision-making support mechanism, the recently introduced OctaVision plays the role of an AI-powered digital mentor, boosting traders' ability to analyse their past trades and delivering the lessons learned in a concise, result-oriented manner.
Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and a variety of services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools. The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities. Since its foundation, Octa has won more than 70 awards, including the ‘Best Forex Broker 2023’ award from AllForexRating and the ‘Best Mobile Trading Platform 2024’ award from Global Brand Magazine.
