Analysis: AI trading agents may transform the high-frequency trading model by linking returns to client portfolio performance
Svmuu News: As AI trading agents enter the financial market, the structural issues within retail trading are facing potential changes. The current business models of exchanges and brokerages rely on clients trading frequently, profiting through commissions, spreads, and order flow. Research indicates that 74% to 89% of retail investors ultimately incur losses. The payment for order flow mechanism behind zero-commission trading leads to platform profits being unrelated to client gains. Independent, programmable AI trading agents can encourage disciplined trading over trading frequency by linking agent returns to client portfolio performance. These agents can also achieve aligned interests by reducing positions, avoiding impulsive actions, and protecting client assets in highly volatile markets. (CoinDesk)
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