Artificial Intelligence is Transforming the Forex Market
Trillions in Forex trades are already being decided through AI. The recent years have been privy to certain significant developments in AI-powered tools that can allow traders to better predict the movements of complex, global financial markets. And it has been a long time coming – as early as 1991. Managing Foreign Exchange for Competitive Advantage, explains how computerized models will play a crucial role in the future of Forex. This was followed by a 2005 University of Cambridge article that actually pinpointed AI as the primary driver of these huge big data-driven changes. Today, the advanced AI algorithms capable of complex machine learning are so widely used that Innovation Enterprise credits their development for reducing turbulence in the Forex market. The widespread use of AI analytics is making the notoriously unpredictable global market to be less volatile than it has been for years.
One Forex analytics company is so confident in its AI that it even offers a loss coverage guarantee for its users. ROFX Forex Trading Program has developed an analytics robot called Forex AI. Powered by neural networks which allows it to update not just data, but even its own internal algorithms. Forex AI is allowing newcomers to the global currency market to make informed trades. It’s proven to be so effective that ROFX is able to ensure traders that the money they put into trades as advised by Forex AI is completely safe from negative trade results – a loss coverage guarantee that allows novices to consistently trade without increasing market volatility.
This has of course only contributed to more growth in the multi trillion-dollar exchange. For good or ill, the most advanced, self-correcting, neural network-powered AI tools in the world are providing Forex analytics systems with reportedly high accuracy rates for predicting short term market movements. This is having a huge impact on the global economy, especially since FXCM reports that the Forex market has a daily trading volume exceeding $5 trillion</a>, making it the largest liquid market in the world. In the current climate of disruptive business and tech models giving global institutions a run for their money, AI-enabled Forex analytics is showing how disruptive technologies can contribute to market stability.
Speaking of disruptive technologies, it’s not just the world of Forex that might soon be taken over by AI. Rebellion Research recently spoke with Deep Learning Italia founder Matteo Testi, who created the now widely used Icaro AI. This deep learning algorithm can analyze historical cryptocurrency trends and provide accurate analysis, officially working as a back-end developer for certain firms that trade in the notoriously volatile digital currencies. Icaro offers 1% profitability each day for the traders who have been using it. And while that may not sound like much of an edge, in the cutthroat crypto market, it’s better than making decisions backed by no information at all. Icaro currently has 10 different AI models, each assigned to a different currency traded by the firms they service, and the engineers behind it are doubtless looking at expansion. While Testi explains that AI definitely has the power to change the finance industry, there needs to be more info on where the two can help one another – a data discrepancy which Icaro and algorithms like it are providing with each trading day.
Written by Rebellion Team & Edited by Albert Daniel Shub & Alexander Fleiss