Artificial intelligence (AI) has come into the mainstream in ways many people don’t consciously realize. For example, AI algorithms could suggest items that you should buy online from a retailer or give suggestions about which streaming content to enjoy. Many hospitals use AI tools to help physicians make faster diagnoses, and manufacturers commonly depend on AI-driven metrics to assess which pieces of assembly line machinery need maintenance.
And, AI is becoming part of a sector that may seem unexpected to many: The foreign exchange (forex) market. Such progress could forever change how people engage in forex trading and the amount of success they enjoy.
AI Increases Opportunities for Online Forex Trading
Online forex trading became a possibility more than a decade ago, so it’s not a new option. But, the industry is like most others in that the professionals taking part in it continually look for ways to evolve. AI has shaped forex trading in numerous ways. For example, it can learn from the habits of traders or brokers and make suggestions to them based on that data.
Some AI algorithms also offer predictive analytics because the technology assesses various factors that humans alone may miss and gives input based on what the data shows. Due to that characteristic, advocates for the use of AI in forex trading assert that it can potentially reduce risk. So, if a person is interested in getting into forex trading but still feels hesitant because of possible poor outcomes, AI technology could increase confidence.
AI Could Reduce Market Panics
Many forex traders who only take part in manual trades and don’t use AI or any similar technologies may be more likely to get overtaken by their emotions compared to people who let technology do some of the work. Even experienced traders who know how to keep a level head could react in ways that trigger market panics and erratic changes in price.
But, AI depends on data, not emotions. Some of the algorithms also protect traders from going through huge losses because they automatically sell assets once the price reaches a predetermined low point. All people who engage with the forex market know that the activity involves risk, and market panics can make such risks more severe.
AI won’t take the risk out of the equation entirely, but it should help people avoid some of the adverse consequences that could occur if they let emotions get the better of them or otherwise act haphazardly. It’s understandable, too, that many individuals will want to test AI apps in the forex market for several weeks before deciding to trust them. Smart technology can still make mistakes.
Human Input Still Necessary
AI technology in the forex market is taking off, and that’s causing some changes. Regardless of how technology progresses, people shouldn’t anticipate a future where they can completely rely on AI and not hire brokers. Fortunately, finding US FX brokers or those who accept clients from another country is simple. Online databases exist that allow people to enter their desired parameters and find forex brokers to meet their needs.
Some of those brokers may use AI tools to make decisions on behalf of their clients, but they’ll still need to apply a checks-and-balances approach by overseeing how the AI operates and confirming that the decisions it makes are the best possibilities.
Most people in industries that use AI understand that even though the technology offers impressive capabilities, it’s not perfect in every case. AI has caused an exciting shift in the forex market and elsewhere, but that mostly means that forex traders and brokers have to change how they operate. Doing things manually is now less necessary as smart machines take over.
And, humans are crucial for realizing that they still need to exercise critical thinking when using AI. Technology is fantastic when it works, but could be devastating when it doesn’t.
read original article at http://www.theglobaldispatch.com/artificial-intelligence-begins-to-disrupt-the-forex-market/