Why Customized AI Trading Tools Are Outperforming Traditional LLMs in Modern Markets
These days, AI trading tools are evolving very rapidly in the trading world. Recent research and competitions have shown that customized AI trading agents perform better than simple $LLM such as GPT 5, Deep Seek, and Gemini Pro. The reason is that these tools do not focus only on profit and loss; instead, they also understand and manage the balance between risk and reward.
Trading markets are always unpredictable, so it is impossible to predict the future with 100% accuracy. That is why advanced AI models use risk-adjusted metrics such as the Sharpe Ratio, maximum drawdown, and value at risk, which are standard practices for professional hedge funds and institutions.
Recent AI trading competitions have proven that specialized trading bots, which include extra logic, market data, and user-defined strategies, generate more alpha than base AI models. However, if everyone uses the same strategy, the alpha gradually disappears.
That is why hedge funds and family offices develop private and proprietary AI tools. In the future, we are likely to see an AI portfolio manager where users define their strategy and AI improves it further. 🚀
