The aftermath of COVID-19 initiated the long-awaited economic exodus. The fourth industrial revolution is knocking at the door of every sector of the global economy.
Consequently, most traders question the future of trading, with machines controlling the way of life.
Is AI a bad induction to forex trading? Will you lose your account? Can you succeed in forex trading without AI? Stick with me to find answers to these questions. What is more? Let’s dive right in.
What Is Artificial Intelligence?
AI is the ability of machines to make human-like decisions. Here’ s a further synthesis of this definition:
Computers were developed to ease your work. To make this possible they had to mimic the human brain. As a result, you can easily accomplish tedious tasks such as long financial calculations.
For example, you don’t have to manually calculate 789.234 × 995622. Instead, you can use calculators or software like excel to computer larger data.
However, these calculations are static. The computer cannot make independent actions unless you click a button on the machine. To solve this issue, developers created machines that feel, see, smell, and think without you inciting them manually. This is called artificial intelligence.
How Does AI work?
How did you learn to walk or talk? It’s simple. You saw and copied what your neighbors were doing. Through practice, you were able to walk and even compete in the Olympic Games.
Machines learn similarly. Expose a machine to data and it will learn. If you want to automate a process, train a computer. The computer which works without manually being incited to is called a robot.
Initially, robots were known to be giant computers, mainly used in wars or other killing missions. However, through computer evolution, we now have smaller or virtual robots that are trained not to kill you but help you handle repetitive or boring tasks.
An example of the robots is the forex AutoTrader . Here’s how to use the Autotrader:
Robot Application in Forex Trading
Technical Analysis: You can let the robot to analyze charts on your behalf. For example, if you want to predict the possibility of the USD rising, expose the robot to past mt4 charts.
It will study the past price changes then determine when the price is likely to hit the highest mark on the chart.
Buying or Selling: You can automate your trading by informing the robot to sell when prices hit a certain mark. This helps you to induce stop-loss orders or buy when the prices hit a certain value.
Follow Signals: Besides tracking price falls changes, you can induce the reasoning behind the falls and rise. Here, the robot can help you follow market news and trading indicators.
Why Do You Need AI in Forex Trading?
With trading robots, you can handle the inefficiencies of behavioral finance. What is behavioral finance? Behavioral finance entails allowing market opinions to dictate your instrument purchases.
The robot allows you to make informed financial decisions because it analyzes the market. Hence, you use the analyzed information to decide on when and how to trade in currencies, instead of relying on opinions.
Besides, the robots enable you to enjoy the freedom of undertaking other investments. The robots take the repetitive task of analyzing charts. Without robots, you would need more time to gather charts, analyze, and derive conclusions.
The AI in robots does all the time-consuming events on your behalf. Why not use the time to expand your investment territory? For example, you can use the time to track other commodities or even the stock market.
You are lucky to forex trade during the AI era. You can now enjoy improved accuracy, speed, and market coverage. Since you decide where to apply artificial intelligence, you now have more control over your trading account.
You can see it’s possible to trade without AI, but your chances of success are multiplied if you apply AI in trading.