Agentic Trading
A trading approach where AI agents participate in research, analysis, and execution workflows through tools such as CLIs, MCP servers, and Skills, while humans define constraints and approve risk.
Agentic trading is the use of AI agents to run parts of the trading lifecycle: data collection, hypothesis testing, execution planning, and sometimes order actions.
The key is not full automation. The key is delegated workflow execution under explicit constraints.
Why Agentic Trading Is Growing
Modern trading workflows are overloaded with repetitive operations:
- scanning many instruments
- checking context across tools
- maintaining consistent pre-trade discipline
- documenting decisions after execution
Agents can handle much of this process burden, freeing humans to focus on higher-level judgment.
Agentic Trading vs Algo Trading
| Dimension | Traditional Algo | Agentic Trading |
|---|---|---|
| Core engine | fixed programmed rules | LLM reasoning + tools |
| Adaptability | limited to coded logic | can adapt within prompt/skill constraints |
| Interaction | mostly code/config | often natural language + runbooks |
| Failure profile | code bugs and model drift | guardrail failures and tool misuse |
Both models can coexist. Agentic trading often complements, rather than replaces, existing systematic infrastructure.
The Three-Layer Operational Stack
Most practical agentic systems combine:
- CLIs for broad command-level access
- MCPs for structured typed tool calls
- Skills for repeatable decision frameworks
This layered model supports both flexibility and control.
What Good Agentic Trading Looks Like
A healthy workflow includes:
- pre-trade checklist enforcement
- explicit execution approval gate
- hard position/risk limits
- post-trade logging and review
- periodic validation against account truth
Agentic trading should improve process quality, not just speed.
Common Failure Modes
- Mistaking fluent language for reliable judgment
- Letting execution happen without clear confirmation
- Increasing size before proving process consistency
- Not separating analysis mode from execution mode
Most losses in early adoption come from workflow design mistakes, not from tools themselves.
FAQ
Is agentic trading only for technical users?
No. Non-technical users can benefit if they operate with clear templates, limited scope, and strict approval rules.
Can agentic trading be used for long-term investing?
Yes. Agents can assist with portfolio checks, rebalancing plans, and rule-based review workflows, not only short-term trading.
Should I trust an agent to execute automatically?
Only after staged validation. Start with read-only workflows, then tiny-size live tests, then controlled scale-up.
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