How can I use AI to better manage risk when day trading commodities and indices? Are there any new tools people have found that are good for this? There has to be something these days can automate the process based on market conditions and the like.

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[John]

This is quite an open ended question. I mean there are tonnes of ways you could use AI, although none are guaranteed to improve your risk management.

-AI can keep evaluating and scoring each of your trades and wider portfolio helping you figure out when to lower you exposure or hedge positions.

-Systems that use AI can automatically adjust parameters based on the existing market environment like spikes in volatility. Programs could instantly adjust stop losses and position sizes.

-Other ways you could use AI is to assess market sentiment by scanning news, social channels etc. These sentiment scores can then be included in your risk management approach like avoiding periods of high uncertainty.

Sentieo is a pretty cool market intelligence tool you may want to look at. I know it’s used by some big institutional investors.

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[Alfro]

Do you know of any reasonably priced tools that can score your trades and portfolio or those that automatically alter trade parameters?

Sentieo is a snazzy platform but it appears to do more market research than risk management per say.

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[Author]

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