What is AI trading bot?

What it means

The genuine version applies statistical learning to feature sets and produces a model whose logic is not explicitly written. The marketing version is a conventional rule-based EA with the word attached, and the two are extremely difficult to tell apart from outside.

Why it matters

Machine learning does not solve the fundamental problem and arguably worsens it. A model with thousands of parameters fitted to a few years of price data is the most efficient overfitting machine ever built, and financial time series have a low signal-to-noise ratio compared with the domains where these methods excel.

What this changes in practice

What adaptivity can legitimately mean is narrower: tracking which of a fixed set of strategies is currently working and weighting toward it. That is what our engine does, using measured win rates with confidence bounds, and we call it a tournament rather than AI because that is what it is. See do AI trading bots actually work.