Insights from Letit’s CEO, Rustam Burkeev
The integration of artificial intelligence into various aspects of human life is happening. The potential role of AI in exchange trading is of great interest from a financial and economic perspective. What business models and trading strategies are possible with Chat GPT? What will be the effect of the use of AI in the field of exchange trading, both classical and in the digital asset market? What is the risk of AI intervention in this area? Let’s ask those who are already engaged in the integration of AI into crypto trading processes. Rustam Burkeev, CEO of Letit Technologies, shares the secret of the project’s success and answers difficult questions.
QUESTION: What is Letit?
ANSWER: The Letit Technologies project is based in the business accelerator in5 Dubai. Letit provides up-to-date technologies, useful information and convenient crypto trading tools for users of all skill levels. It trains beginners and equips seasoned traders with technology tools to monitor and optimize processes.
QUESTION: What is the nature of your partnership with Microsoft?
ANSWER: At the beginning of 2023, Microsoft approved a $150,000 grant for the Letit project to use partner software, namely access to the GitHub repository and a large list of useful soft. The international payment service Stripe provided Letit with $25,000 as a grant to cover payment fees for the purchase of ecosystem products. And in May, the project was granted access to the Azure Open AI API and the ability to analyze texts that are 50,000 characters long in one piece. All in all, we have received support from Microsoft in the amount of about $600,000. These resources will boost the development of Letit’s “trading tracker” app in the near future. Our objective is to be at the forefront of observing how AI will impact the industry. This is a really exciting prospect.
QUESTION: What are the prospects for AI in the industry?
ANSWER: Most trading decisions in the markets are made on the basis of technical analysis, and their indicators are described by simple equations. Traders experience the biggest losses when they break the rules due to emotions or other non-systemic factors, succumbing to fear or euphoria. To support the principle and algorithm of decision-making, all that is required are their systematic implementation and automation of routine processes. The algorithmic strategy in trading is popular because it is understandable and appealing, while the necessary technologies for its implementation already exist.
With the development of AI, a new round of the race for the technical equipment of the trader begins. The opportunities that are created in robotic trading labs are anonymous and rapid ordering, automatic hedging of positions, rebalancing and redistribution of the portfolio when market conditions change, as well as work in several asset classes at once. If previously these robotics strategies were unable to take into account the reactions of the market to force majeure events. (speeches by politicians and heads of central banks, terrorist attacks, disasters, and much more), in the current era, more and more algorithms are developing their ability to react to news and interpret speech and comprehend speech. There are many sophisticated strategies, the most successful of which are held in the strictest confidence. At every stage of the trading process, it is possible to implement AI that can increase trading productivity and streamline processes.
QUESTION: How do the exchanges feel about this?
ANSWER: Using trading robots is a good idea, not only for traders but also for exchanges. The exchange receives interest from each transaction. The more transactions there are, the greater its income. This trading is strongly encouraged by exchanges, as it increases the number of transactions by orders of magnitude. Technologies optimize processes, democratize the market, and increase its volume and complexity.
QUESTION: How do you build your product and brand, how is AI involved in these processes?
ANSWER: Financial literacy is becoming an integral part of modern culture, and banking is moving beyond classic services, enriching applications with new products. Financial service users are exploring options for resource management, passive and semi-passive income. They shape our target market and determine our positioning.
For the past three years, we’ve been considering AI as one of the tools for optimizing trading processes. Two years ago, we had already integrated AI tips into the trading terminal, and today, with the help of Microsoft Solutions, we are planning to integrate AI into the trading tracker. This application allows one to identify patterns in the behaviour of a trader that affect the performance. This is a kind of navigator, our main product today. The application analyzes your transactions and gives recommendations on how to improve your productivity.
QUESTION: Where is the limit of automation? If you do not provide a “get dough” button, then what is the point and mission?
ANSWER: There is no sport without an athlete. This philosophy permeates our entire project. Letit develops products and services that optimize trading processes and increase efficiency on the exchange for traders. Treat Letit like a piece of equipment that ensures the best results. Technology enables us to automate routine processes, making trading more exciting and safer for newcomers. The Letit project democratizes and popularizes the new economy and trading as a way of thinking, a tool for managing material resources; as a direct path to understanding the nature of economic relationships and a necessary minimal threshold of financial literacy in the 21st century. It is the general standard today, and Letit is involved in establishing it. That is our mission.
QUESTION: What are the overall risks associated with AI and general robotization in the financial industry?
ANSWER: The risks of using algorithms are similar to those of using AI in other areas, except for the financial industry. The most urgent problems are the technical risks of platforms during high-frequency, super-fast trading; stability of servers, computers and networks; quality and error-free code, as well as its vulnerability to hacker attacks. The software can only determine the necessary actions in cases where coders misunderstand, so algorithms often have constraints built in to prevent this problem. We always use a sample rather than a statistical population to make a decision. Traders cannot have confidence that the strategy’s results, which are based on history and real experience, will remain the same in the future. Any robotic strategies require brick-and-mortar control. Therefore, Letit chose not the path of “developing automated earning tools on the exchange”, but the path of “equipping traders” with advanced tools. Letit is a technological service for living people.
July 19, 2023