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| Claim Level | What It Actually Means | How Common | Red Flag? | |
|---|---|---|---|---|
| AI-powered trading | Could mean anything from GPT-generated signals to a simple moving average | Very common | Maybe - ask for specifics | |
| Machine learning optimized | ML used at some point - possibly just for parameter tuning | Common | Not inherently - verify what ML does | |
| AI agent makes live decisions | An LLM or ML model approves/rejects each trade in real time | Rare and risky | Ask for live performance data | |
| AI-developed rule-based execution | AI built and tested the strategy - code executes it | Rare | Lowest risk - strategy is fixed | |
| Proprietary AI algorithm | No specifics given - could be anything | Extremely common | Yes - if they cant explain it simply - be cautious |