3 Ways Intelligent Machines Will Dominate Forex Trading

Intelligent machines are taking over the investment and trading industries. Trading in the Forex market may feel like a bet or a gamble, because it is one. Seasoned traders and professionals may look to data to make better-informed decisions, but the level of risk in trading money to make money in the Forex market is still high.

The age of trading with your gut and relying on human-made decisions could be nearing an end. A new age of trading with intelligent machines is just beginning.

Using data and technology to make better trading decisions isn’t new. Individual traders, hedge funds and other FX players have been doing it for years. However, as technology, data and artificial intelligence systems become more advanced and sophisticated, some are asking: Will AI take over Forex trading? There could be some major benefits to using AI for trading.



The average daily volume of the global FX market is close to $5 trillion, which makes it the largest financial market in the world. Sifting through all the trading possibilities to evaluate the best options takes incredible time, concentration and experience. Even then, traders make mistakes and overlook viable trades. An intelligent computing system that can collect and analyse all the data and test it against complex algorithms to identify only the best potential trades has obvious benefits.

Finding Patterns

To many that have found success in FX trading, the key is to know and find the patterns that point to a good trade. Discovering the patterns could take years of experience, complex mathematical algorithms or just a gut feeling. However, even the most seasoned traders can’t quantify patterns to the scale and accuracy that a well-developed intelligent machine potentially could.

Predicting Market Movement

Forex traders profit by making predictions on future currency exchange rates. Several factors can affect the currency trading value. A few of those factors that can affect a currency’s exchange rate include: interest rates, political landscape and leadership, inflation, and public debt. Those are just a few, but there are more to consider, and it requires a thorough understanding of each to make smarter predictions. Intelligent machines could theoretically analyse past data and current market conditions to help predict how prices will move in the short-term future.

There’s a shift happening in the finance industry. Banks, hedge funds and traders are already experimenting with how intelligent machines could make the most profitable trading decisions. Robo-advising startups are popping up everywhere.

However, there is still some work to be done before machines start making bets for us. The processing power required to handle the amount of data in the constantly updating Forex market is immense. Also, even though the machines will be crunching the numbers and making the predictions, it still requires intelligent and skilled humans to build the technology.

Nevertheless, today’s technology has come a long way and smart FX traders won’t leave their decisions up to chance and gut feelings. FX Alerts is getting ahead of the financial shift and utilising intelligent computing and data analysis to help traders make more profitable decisions. Find out how FX Alerts works and test the technology out for yourself with a free trial.