Following the previous text, where do the advantages of AI lie?
1️⃣ AI does not "understand the big picture"
AI looks at:
• historical fluctuations
• technical parameters
• statistical probabilities
But it does not understand:
• sudden shifts in macro policy
• black swan events
• extreme market emotions
In extreme market conditions, AI will only "continue to execute" and will not "proactively hedge".
2️⃣ The upper limit of returns is "averaged out"
I must say one truth:
AI's goal is not to help you catch the top or bottom, but to:
stability, replicability, scalability
This means:
• In the second half of a bull market, it may underperform aggressive manual trading
• in a strong single-direction market, it may reduce positions too early
👉 It seeks survival rates, not mythical returns.
3️⃣ The more people use it, the weaker the advantage
When the same set of AI logic is used by a large number of users simultaneously:
• similar entry points for positions
• similar locations for reducing positions
The result is:
• liquidity is consumed in advance
• the marginal effect of strategies decreases
This is also why "AI is not a holy grail".
So, should we use it or not?
A more rational answer is:
AI is suitable as a "base asset manager", but not suitable as "total faith".
A more mature usage is:
• AI manages 50%–70% of the base assets
• manual operation for trend increasing / swing
• extreme conditions are managed by humans
You let AI be responsible for "discipline",
you be responsible for "judgment".
4️⃣ A word for newcomers & veterans
• Newcomers: AI can help you pay less tuition
• Veterans: AI can help you avoid emotional mistakes
But if you expect:
"Start an AI and then lay back to earn in a bull market"
You will eventually be educated by the market.
The market will not eliminate those using AI,
it will only eliminate those who do not think.
#$BTC
