Forex Markets forever changing due to artificial intelligence

It's the best time of year to talk about the future for forex . In addition to the ever-present ICO news, you've likely heard of one other recurring subject: artificial intelligence (AI). Whether you want it or not, if AI doesn't sound interesting to you already, you should probably reconsider that.

Based on the scenarios AI brings in the future, we have gathered information that will affect traders most.

Big race between AI and humans.

AI is set to revolutionize the technology world. The amount of cash flowing around it is already astounding, and that number will only increase in the coming years. By 2030, AI will contribute as much as $15.7 trillion to the world economy, according to Bloomberg. Chinese and Indian combined output for the same period is now more than $15.7 trillion.

A lot of countries have taken action in order to prepare for the upcoming AI era. Those who are first to invent and successfully implement artificial intelligence will have a major boost to their country's economy. Naturally, the market for currency will benefit greatly from that.

Nevertheless, while Russia focuses largely on AI autopiloting technology, China expects to be the top exploitation country by 2030.

In terms of gross value added, a close proxy for GDP, AI could raise China's annual growth rate by 1.6 percentage points to 7.9 percent by 2035, adding approximately $7 trillion.

“The impact of AI on China will be huge and greater even than the impact on the U.S.,” Anand Rao, an AI researcher at PwC.

Even though the White House is eager to avoid losing this race to China, some sources indicate that it may happen. "America and China are currently racing each other to become the leader in AI. With all the ingredients in place, China will ascend to the top. Among them: government funding, massive populations, an active research community, and a society that appears to be ready for technological change.” Anthony Mullen, director of research at Gartner.

Artificial intelligence is expected to significantly impact the U.S. economy, and not just in a good way. Although the U.S. government has taken some actions to ensure positive outcomes, increased productivity and economic growth will lead to both short- and long-term job loss:

  • R&D investments in artificial intelligence.

  • Aim to create AI systems for cyber defense and fraud detection that can detect and respond to evolving threats, detect fake financial transactions, and prevent identity theft.

  • Provide incentives to existing companies that encourage innovation and ease the entry of new startups onto the market.

  • The U.S. analyses suggest that combining growth with automation can lead to a richer explanation of the growth process, as well as implications for future growth and income distribution.

Machines have become adept at a variety of tasks.

According to a report by Eurekahedge, learning and self-adjusting hedge funds are already significantly outperforming quant hedge funds and traditional human fund managers.

Even though there are machines on the market already, the technology has advanced recently to surpassing levels of accuracy. Inhumanly intelligent and profitable expert advisors may not yet exist, but the technologies developed just recently give us a glimpse of what's to come. Many investors see artificial intelligence as a game-changer for them, be it in terms of analytics, risk calculation, prediction, or decision making.

For example, the impact of human emotions on trading decisions was always one of the main problems. Excluding the human factor would come as a logical solution to this. In the future traders most likely will use AI, that will make decisions and execute trades for them, which will be much faster and more efficient than any human.

Currently, machines can learn through the analysis of enormous amounts of data, typically derived from historical prices. The data samples consist of variables called predictors, as well as a target variable, which represents the expected outcome. AI then learns from the predictor variables so that it can forecast the target variable. Simply put, an algorithm studies historical data to discern trends and predicts possible movements.

There are many ways that artificial intelligence is utilized to optimize algorithms, including regressions, neural networks, deep learning, support vector machines, and naive Bayes.

Our trading strategies are currently in the process of introducing this powerful tool, so we have a good chance of being the first to benefit from it before any possible complications arise.


Artificial intelligence will have a major impact on the financial sector. Even today's technologies in this sector have the ability to change our lives significantly. They are only waiting to be implemented.

Even though there is a lot of controversy surrounding AI, it will likely first provide us with meaningful opportunities to make money by influencing the global economy, but it will also enhance our trading experience in many ways.

4 views0 comments

Recent Posts

See All