Unusual Market Conditions Are Weakening AI Trading Bots

AI Trading Bots Are Limited by Historical Data

Recent unusual market events, 10/10 liquidations, and last week's sharp sell-offs are diminishing the impact of agentic trading models. AI-based trading systems are ineffective in such extraordinary conditions as they operate based on historical data.

Human Traders React Emotionally

A founder of an agentic trading venture stated that human intraday traders and retail players make emotional decisions. This situation weakens their ability to compete with AI-based systems. While AI's analytical power creates an advantage over the emotional reactions of human traders, this advantage can be lost during unusual market fluctuations.