AI-Driven Trading
A trading mode where AI decides when to open and close, weighing market context and conditions; per-pair execution config (position, stop-loss / take-profit, etc.) follows the same risk framework as Strategy Trading and can run in either live or paper.
AI-Driven Trading is one of Pluto's trading modes: when creating a trading bot, besides the traditional strategy mode, you can choose AI-Driven Trading, and run it under either Live or Paper execution. In this mode the timing of entries and exits is decided by the AI, no longer driven by preset strategy conditions; position, stop-loss, take-profit, max drawdown, and other execution config items follow the same per-pair model as strategy trading and must be set per pair when creating or editing the bot (see Execution Config). This page covers what AI-Driven Trading is, how it relates to strategy mode, execution config, and usage tips. For concepts see Trading Basics; for a mode comparison see Trading Modes.
Where it sits in the trading system
When creating a trading bot you pick a trading mode (which decides the signal source) and an execution mode (live / paper); the two are orthogonal, and AI-Driven Trading, as a trading mode, can freely run live or paper:
| Mode | Description |
|---|---|
| Strategy mode | Runs the strategy's preset buy / sell conditions, paired with the per-pair execution config set when creating the bot |
| AI-Driven Trading | The AI decides entry / exit timing; execution config (position, stops, targets, risk, etc.) is set per pair when creating / editing the bot, sharing the same concepts as strategy mode |
| News & Event-Driven | AI parses news and events into signals and decisions; execution config is also set per pair when creating the bot—see News & Event-Driven Trading |
Once AI-Driven Trading is selected, the system places orders following the AI's entry / exit recommendations, while the execution config (position, stops, targets, max drawdown, etc.) is still defined and strictly enforced by you—the same risk model as strategy mode. For a full breakdown see Trading Modes.
Execution config (per pair)
Under AI-Driven Trading you don't configure strategy-style entry conditions, but you must still set execution config per pair (the same concepts as strategy mode) to control per-trade sizing and overall risk:
| Item | Description |
|---|---|
| Position sizing | Per-trade or total position ratio to cap each trade's exposure; align with the recommendations in Execution Config—typically 5%–20% per trade with a total cap |
| Stop-loss | Auto-close when loss on a trade or position hits the configured ratio; strictly enforced by the system, same as strategy mode |
| Take-profit | Auto-close when profit hits the configured ratio to lock in gains |
| Max drawdown | Overall drawdown cap; exceeding it can trigger reductions or pauses (per system behavior) |
| Add-on rules | Whether to add to a position, and the conditions / ratios for doing so (if supported); must work together with the position cap |
The meaning, recommended ranges, and risk relationships of these items are covered in Execution Config and Risk Management. Entry / exit timing is delegated to the AI, but risk and position are still controlled by the execution config, so set it carefully according to your own capital and risk tolerance.
Difference from strategy mode
| Dimension | Strategy mode | AI-Driven Trading |
|---|---|---|
| Entry / exit logic | Determined by the preset conditions and indicators in the strategy | Determined by the AI based on market and context |
| Execution config | Set per pair when creating the bot (position, stops, targets, drawdown, etc.) | Also set per pair when creating the bot, with the same items as strategy mode |
| When to use | When rules are clear and you want strict condition-based execution | When you want AI to time entries / exits but still keep explicit risk control |
The two modes share the same execution-config concepts—position, stops, targets, max drawdown, etc.; they only differ in who decides entry / exit timing (strategy rules vs. the AI). Both can run live or paper.
Usage tips
- Execution config first: just like strategy mode, set sensible position, stops, targets, and max drawdown before relying on the AI for entries / exits—bad risk settings amplify the volatility of AI decisions. See Execution Config and Risk Management.
- Paper before live: it's worth running AI-Driven Trading in Paper Trading for a while to observe entry / exit and risk behavior before going live.
- Regular review: combine Trade Statistics and Monitor to check whether AI decisions and execution config match your expectations, and adjust the execution config or pause the bot if needed.
Common questions
Can AI-Driven Trading and strategy mode run together? No. One trading pair can only be managed by one bot, so the same pair can't be managed by both a strategy bot and an AI / news-event bot at the same time; to switch modes, stop the current bot first, then create or switch. One bot can manage multiple pairs on the same exchange.
Where do I set the execution config? When creating or editing an "AI-Driven Trading" bot, set the position, stops, targets, max drawdown, etc., per pair—see Execution Config. This mode has no separate strategy entry-condition config.
Are stops and targets actually enforced? Yes. The stops and targets in the execution config are strictly enforced by the system, same as in strategy mode; the AI only decides entry / exit timing, while risk control still follows your configuration.
Next steps
- Live Trading — Live preparation and monitoring
- Execution Config, Risk Management — Position and risk configuration
- News & Event-Driven Trading — Another AI-driven trading mode
- Trading Basics — Concepts