The AI Trading Library 675 - Mastering Algorithmic Trading

Artificial intelligence promises to transform financial markets, but the gap between hype and reality is vast. In this clear-eyed guide, Grace Lin Mercer cuts through the noise to show you what AI can—and cannot—do for your trading. You will learn how machine learning models are built, trained, and deployed in real markets, and why most algorithmic traders lose money. This is not a get-rich-quick manual. Instead, it is a practical, honest exploration of the tools, risks, and discipline required to use AI responsibly. From data preparation and feature engineering to backtesting, risk management, and live execution, every chapter emphasizes the hard truths: past performance never predicts future results, leverage magnifies losses, and no bot can guarantee returns. You will discover how to design your own strategies, avoid common scams, and think critically about the algorithms you encounter. Whether you are a curious beginner or a seasoned developer, this book will help you trade smarter—not harder—by understanding the real capabilities and limitations of AI in finance. Part of The AI Trading Library. About the author Grace Lin Mercer writes for The AI Trading Library.