How AI Quant Funds Are Beating Retail Traders in Stocks and Crypto

TLDR

• Goldman Sachs has warned AI could cause widespread job layoffs across finance and other industries
• AI quant hedge fund Ningbo’s High-Flyer reported a 52.55% average return in 2025
• 84% of retail traders lost money in their first year of trading crypto
• Around 19% of people globally now use AI tools to manage or adjust their investment portfolios
• Experts say learning to select and manage AI trading agents may be the most valuable financial skill going forward

AI is changing how people invest, trade, and protect their money. What started as using chatbots for basic financial questions has grown into a world where AI agents can execute trades, monitor markets around the clock, and manage risk — all with little human input.

Goldman Sachs has warned that AI could cause widespread job losses. Citrini Research recently flagged a job-displacement scenario that briefly rattled markets. These warnings are pushing more people to think about how to protect their finances.

The answer, according to some experts, is not to keep up with every new AI tool. Instead, the focus should be on learning one skill: selecting and managing AI trading agents.

AI quant hedge fund Ningbo’s High-Flyer reported an average return of 52.55% in 2025, placing it among the top performers in the industry. That number stands out when compared to the wider retail trading market.

In crypto, 84% of retail traders lost money in their first year. Most losses were not caused by a lack of information. They were caused by a lack of discipline — panic selling, revenge trading, and emotional decisions.

AI does not have those problems. It does not sleep, panic, or hesitate. It executes trades based on the rules it is given, every time, without exception.

Why AI Agents Are Gaining Ground in Crypto and Stocks

Around 19% of people globally now use AI tools to build or adjust their portfolios, according to eToro. In the UK, nearly 39% of people use AI for future financial planning, according to Lloyds Group.

Despite this growth, AI trading agents are still largely underused by individual investors. Most use cases involve asking AI for advice, not letting it execute a strategy.

The difference matters. Using AI as a search engine for investment tips is not the same as deploying an agent that follows a defined strategy with set risk limits.

Experts describe the process like managing a sports team. You set the goal, define the rules, and let the agents do the work. You keep kill switches in place, set position caps, and monitor performance over time.

What This Means for Everyday Investors

The key is not picking the best AI model. It is building a system with clear goals and constraints, then measuring results consistently.

Markets in crypto already operate 24 hours a day, seven days a week. AI systems are built for that environment. Human traders are not.

As AI tools become more accessible, the gap between institutional and retail investors could narrow. But only for those who learn how to use these tools effectively.

The skill being described is not technical. It is managerial. Decide what you want, set the rules, verify the controls, and track the results.

Ningbo’s High-Flyer’s 52.55% return in 2025 remains one of the most cited examples of what AI-driven trading can produce in the current market environment.

The post How AI Quant Funds Are Beating Retail Traders in Stocks and Crypto appeared first on CoinCentral.