I am often asked how AI will change trading going forward.
At its core, trading in capital markets is a zero sum transfer of capital from one participant to another. Even if you placed seven LLMs on an exchange to trade the same asset, regardless of how intelligent they are, some would make money and others would lose it. The existence of traders going forward is not what is up for debate in my opinion. Good traders will continue to source solid edges.
What will change is the speed of signal rotation. The identification of signals, their crowdedness, and the reflexivity they create will compress into much shorter life cycle. Signals that once persisted years may now last weeks or months or even days.
To some extent this is happening right now especially with some of the larger shops that are tactical end users of risk.