Financial technology has reached immense heights in the past years. With the development of new technologies and artificial intelligence, we can see the impact of robots and new tools in various fields of our lives. Finances are no exception.
Until the debate over whether smart machines will supplant us, artificial intelligence is confidently occupying the financial markets. One of the areas where AI capabilities have the greatest chances to replace a living person is exchange trading. Investors have benefited from the help of trading advisors in this field for several years. However, today’s Forex robots are not just computer programs that have algorithms embedded in them. Old advisors have been replaced by new systems based on neural networks. Innovative technologies not only make profitable trading decisions with ease but also learn on their own in the process.
Artificial Intelligence vs. Traders
We should point out that when we talk about financial technologies, almost always, we mean artificial intelligence and new tools. They are closely connected to each other. Today, automated trading advisors control about 60% of the world’s investment markets. Profitable trades are increasingly being made without the direct involvement of live traders. The main super-ability that a Forex robot can oppose to a human is invulnerability. A computer program is not prone to irrational and impulsive actions. It is unfamiliar with the feeling of fear. It does not have the illusory ‘gift’ of intuition, the significance of which people are so inclined to exaggerate. Any trading software or trading robot compared to a human trader is better in terms of executing various trades and accomplishing goals.
Instant detailed analysis of the situation, forecasting market trends, filtering out dubious patterns – here are just a few of the capabilities of the AI robot, which, at the same time, learns with each operation, increasing its own power exponentially. So, is it any wonder that smart cars will completely replace Wall Street wolves in the foreseeable future?
Back in 2017, the world’s largest hedge fund expert Eureka Hedge conducted an interesting study. After analyzing the activities of 23 investment funds that use AI in their work, the company came to the conclusion that their annual profitability is several times higher than that of funds managed ‘the old-fashioned way’ (that is, people). According to the researchers, the reason for the success of artificial intelligence is that it not only quickly accumulates and processes large amounts of data but also constantly re-tests.
At the same time, experts believe that we should not fear the prospect of ‘capture’ of the financial world by Forex robots with artificial intelligence. First-class specialists freed from the trader’s routine will be able to find themselves in projects that are vital for humanity, for example, alternative energy or medical IT start-ups.
When Robots Hit Records
A striking representative of the new generation of trading systems with artificial intelligence for Forex is the self-learning trading advisors who are quite capable of competing in their capabilities with the human brain. Let’s start with some statistics. According to the independent study, these trading robots have shown an outstanding result in three years.
NeuroX is one of the leaders in that regard. The profitability currently ranges from 2% to 32% per month (depending on the chosen Tunnel or Wave product, as well as the strategy). All advisors have a built-in ‘risk manager’ that automatically calculates potential risks for each step and controls the actions of the program. This allows a trader to minimize drains and drawdowns and makes NeuroX the optimal technology for making money on Forex. These Expert Advisors are suitable both for beginners or amateurs to test trading systems and for real pros.
Trading robots became available to individuals. Today, any trader who has reached the age of majority can rent such a software product with artificial intelligence. At the same time, it is absolutely not necessary to be a professional trader, the entire trading is carried out by the system, and the user only needs to observe the results and withdraw or reinvest profits.
Has Fintech Reached Its Limits?
As more and more people are engaging in trading and the technology develops rapidly, there are no thoughts about the limitations of Fintech. This is something that will constantly evolve and help Forex trading reach its best. People, in their turn, will have more possibilities to access different markets and try out various tools.