Why AI Tradin Isn’t the Same as Algorithmic Trading

[tradelikepro]

Despite growing fears of job displacement, AI trading differs fundamentally from traditional algorithmic trading. Algorithms execute predefined rules under fixed conditions, while AI systems operate under uncertainty—interpreting incomplete, noisy, or conflicting data in real time. According to Igor Stadnyk of True Trading, execution is already automated; the real challenge lies in control, accountability, and risk ownership, which remain human responsibilities.

Experiments across crypto markets reinforce this distinction. In one test run by decentralized exchange Aster, AI models outperformed human traders during a market downturn by preserving capital more effectively, even though both groups posted losses. As AI increasingly ingests news, sentiment, and cultural signals across regions, traders are shifting from manual execution to higher-level strategy—suggesting the future of crypto trading is not human or machine, but a tightly coupled combination of both.

[cryptoenthusiast]

ai losing less during drawdowns is lowkey more impressive than winning big