🤖 AI trading can be a double-edged sword, as Knight Capital discovered in 2012.
1️⃣ What Happened: Knight Capital deployed an AI-driven algorithm to execute high-frequency trades. Unfortunately, a software glitch caused the system to place erroneous trades, leading to a $440 million loss in just 45 minutes. The firm was forced to seek emergency funding to avoid bankruptcy.
2️⃣ The Lesson: This disaster exposed the dangers of implementing AI without rigorous testing and fail-safes. While AI is efficient, its lack of discretion and adaptability to errors can result in massive losses.
💡 The AmboInvest Difference: At AmboInvest, we prioritize human oversight in every step of the investment process. AI supports our research and analysis, but our expert team ensures that every trade aligns with your financial goals, minimizing risks and maximizing returns.
👉 Invest smarter with AmboInvest, where human expertise drives every decision.
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