With all the claims that it’s state-of-the-art technology, you might think that AI is still a very costly thing, and sure, up until recently, its implementation only paid off for huge data processing applications. It used to only be available to big companies, but with ever more commercial applications, these ‘elite’ capabilities are becoming more and more accessible to everyone. A major reason for this is that the target group for innovative AI tools now includes almost all companies and even consumers all around the world. Not needing to invent their own AI from scratch, they can make use of AI as a service. By doing so, almost everybody will soon be able to implement AI technology to secure their profits.
AI is not only capable of providing us with interesting (and quite unsettling) gimmicks like the random face generator, this technology also found entry into many sectors of our business and private lives. You may not realize it, but AI technologies impact you every day, such as translation, chatbots, HR screening, cybersecurity and credit card fraud detection, and plays a vital role in key industries such as medical imaging, manufacturing and even the creation of legal documents. And it does not end there. With increasing sophistication, the range of applications of AI is virtually limitless. Everywhere, where you once had to pay expensive experts to handle these tasks, you can now replace them with AI. Even if you are a small company, you can access highly specialized skills through AI for an affordable fee. Most tasks now only require a degree of human supervision or just a review of edge cases, and the AI will do the rest.
In trading, algo-trading is nowadays almost a prerequisite for a successful operation, as the volume and frequency of trades have now exceeded the bare capacities of human traders. In the old days of trading, such advanced technology was just for the major players. To be competitive on today's intraday markets, which are arguably the most profitable markets, however, requires you to have such technology in your operations. Automated trading has become ever more widespread and the numbers from European Power Exchange (EPEX) about API usage bring this point home. For its continuous intraday market, EPEX SPOT shared some interesting data: 85% of exchange members use the continuous intraday API with about 60% of them using automated trading, effectively amounting to 55% of total volume getting traded on EPEX SPOT automatically. This data focuses on the EU, but it gives you a rough picture of a massive global trend in energy trading.
AI can make power trading cheaper and more accessible for everyone in the market. This is because AI is able to automate many crucial tasks. First, it won’t be necessary anymore to have complex software or an expensive 24/7 trading team and secondly, both market risk and operational risk can be reduced. In short: AI has the potential to reduce overall operational costs while also maximizing your margins, which can give you the decisive edge in trading.
Developing AI-based algorithms is still very expensive and therefore only possible for companies that do not operate on thin margins. Trading as a Service (TaaS) is the most feasible option, which is the best way for you to access AI trading technology at an affordable price. TaaS provides market data, uses the latest technology and architecture that meets high-performance requirements, and guarantees continuous operation. To enhance your trading performance, our TaaS offers AI-based algorithms for augmented trading, which instead of using fixed rules, basically learns how the market works by scanning huge volumes of market data and experimenting in a simulated environment. By relying on TaaS, we are the ones shouldering the cost of market access, software and data, yet we only have to do it once and pass only a slice of this cost on to individual customers, leveraging economies of scale.
Trading services for intraday markets are designed to make your life easy, as you will be able to make the most of your flexible assets without the hassle of creating your own trading desk. By utilizing the capabilities of new technologies and combining them with the skills and experience of our in-house trading experts, we lift your trading performance to a completely new level. In a couple of years, most trading activities will be based on algorithms that are created through AI, which we incorporated to a high degree in our own trading setup. Our AI-augmented algorithms can learn to recognize changes in market conditions and adapt their behavior accordingly, thereby achieving superior trading performance for our customers. As we provide trading as a service, you keep profiting from our increasing trading expertise through time. Book a non-binding call to learn more.