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Automated AI Trading vs Forex Robots. What is the best?


Over the two last decades, the forex market was saturated by automated trading systems and thousands of forex robots across the world were touted as the next generation of trading. According to JPMorgan 🏦, nowadays, 90% of trading is run by computers and algorithms. This means that if you want to invest, you will need equivalent trading tools to compete, and we can help you.  Fortunately, artificial intelligence arrived in the forex market, and now AI trading is replacing the old robot traders 🤖. So, here we will help you to understand what is best: AI trading or forex robots?

What you will learn ahead 🎓

  • The difference between AI trading and robot trading
  • Why robot trading or bots are no longer the best solutions
  • How to use AI trading in forex
  • The best forex brokers to use with AI trading.
🎯 Our mission is to help you invest efficiently in forex and improve your results. Get extra valuable forex trading ideas from leading finance experts on the trading Academy and our free forex Telegram channel.

💹 When trading forex, we suggest you consider long term results.

Automation and forex robots in trading 🤖

Since the digitization of forex trading, several automated trading systems have emerged as a solution to make money in forex. Over time, a variety of promising digital applications has been created, such as automated trading, robot trading, bot traders, and so on.

So, this is how expert trading advisors, trading managers, and forex signal providers came up with the promise of great returns in forex, most of them working through MT4 to implement its trading strategies.

What is AI?
🔬 🎯 Artificial Intelligence is a system capable of analyzing and learning in order to make predictions.
The goal of using AI is making our lives easier, doing complex tasks faster, better and cheaper.

About 20 years later, today, many of these automated trading systems and forex robots were short-lived and, eventually, unable to adapt to changing market conditions. As a result, many forex trading systems were overpriced and failed to meet performance expectations.

The fact is that many things have changed in the market (not just in forex trading), and many people still believe that using “simple” robots for trading or automated trading systems is sufficient to succeed in forex. However, in the era of quantum trading led by artificial intelligence (AI), we need to ask ourselves how sustainable those old-generation robot traders are.

⚠️ You should also be wary of free forex signal providers and fake professional traders who may be scammers displaying that they offer a new revolutionary robot trading with AI through MT4.

It turns out that the native trading code solutions of Metatrader are not able to fit AI software. Thus, the only way to use AI via MT4 or MT5 is to connect it to an external source, on which the AI can execute, mirroring the negotiations on MetaTrader.

With Wiseinvest automated AI trading, you do not need MT4 or any other trading platform. You just need to link your forex broker account directly on our dashboard and enable the AI trading in 1-click.

Forex robots versus AI trading

Fast forward to today, artificial intelligence (AI) is the next-generation technology that is rapidly changing the financial market and has now reached the retail forex trading market. So, what is the difference between forex robots and AI trading system? What is the best forex trading solution?

A fundamental feature of automated AI trading, compared to simple robot trading or automated trading, is the ability to learn which are the best and worst decisions to be made for a given task and data set. In doing so, AI can be smart and intelligent, learning from past successes and mistakes. In other words, AI can adapt to find the best trading strategies for specific scenarios in the foreign market.

It turns out that it is impossible for a human being, or even for a group of expert traders without robust automation, to process big data economics as quickly and efficiently as a machine with AI can. It means that simple robot traders or automated trading through MT4 / MT5 are no longer efficient, mainly due to the large amount of data involved in forex trading.

📌 Only a true AI trading system can quickly analyze big data and bring it into live trading. 

It is important to reinforce that MT4 does not support AI and many websites out there are promoting this type of service (MT4 with AI). Another point is that, unlike a human being or simple algorithms, an AI can work 24 hours a day, 7 days a week, doing a much more productive job.

The fact is that the forex market has become quite more dynamic since the inception of automated trading software. In this new much more complex scenario, forex robots must be able to analyze inherent massive amounts of data and quickly adapt itself when needed. It turns out that as we discussed in this article about AI in forex tradingsimple robots traders cannot handle big data like Artificial Intelligence.

Thus, here at Wiseinvest believe that most automated trading systems over the last decade are no longer effective because the forex market has become more efficient, in addition to trends lasting for shorter time-frames.

✅ The conclusion is that AI trading is much more efficient than robot trading in forex, and now you can use it in your favor to invest. And just to recap, these are the reasons by which AI trading is better than forex robots:

  • The dynamics of the market have changed and there is a great variety of factors and information to be considered when trading. AI can quickly analyze large amounts of information, including unstructured data.
  • With AI it is possible to implement a wide variety of trading strategies, including technical, fundamental, and sentiment analysis. Forex robots cannot do the same.
  • Just an AI trading system can learn from mistakes and improve its ability to trade over time.

AI in Forex in 2020

As we pointed before, simple automated trading or those popular robot trading systems alone are no longer the best forex trading solutions, and the use of AI, by machine learning and neural networks, is the way forward.

💡📍 I’d like to suggest this article to learn more about how an automated AI trading system works in the forex market.

Through the use of AI, proprietary math, and our ability to incorporate fundamental news analysis algorithmically, Wiseinvest has developed a suite of 40 trading strategies as part of our automated AI Trading and AI forex signals service.

The role of Big Data in AI trading

It is important to note that all of these advancements in artificial intelligence are made possible by, and otherwise depend on, the emergence of big data. The ability of a computer algorithm to generate useful solutions from the data relies on the existence of a lot of data. More data means more opportunity for a computer algorithm to find associations. And as more associations are found, the greater the accuracy of predictions. Just like with humans, the more experience a computer has, the better the results will be.

This trial-and-error approach to computer learning requires an immense amount of computer processing power. It also requires specialized processing power, designed specifically to enhance the performance of machine learning algorithms. Our AI trading is designed through a multi-layer system able to quickly learn over massive amounts of data to find the best signals to trade.

Forex AI Trading and AI Signals

Our AI investment solution is the result of years of research and development by specialists in Artificial Intelligence, Finance, and Mathematics, who combined their skills specifically to design the best tools for helping traders invest automated or manually with AI forex signals in the forex market, regardless the experience level.

By programming in non-application-specific code, such as Python, Wiseinvest doesn’t rely on third-party applications to operate our fx trading strategies.

🚀 We have been working to make AI affordable and simple for everyone. Thus, despite all complexity involved in developing an AI trading system, with Wiseinvest you can use AI to trade in a very simple way. No programming skills are required. Get started free.

This is an important distinction that helps make our AI trading solution comprehensive and versatile compared to many strategies offered on the internet, which are constrained by the platforms they’re created on.

To assure the quality of the AI trading system, our multi-layer platform is integrated with AWSIBM Watson, and Google AI.

Identifying profit targets in forex

Using technical analysis, our algorithm considers not just the patterns of various trends, in including support and resistance levels, and cross-indicators, but our AI trading system is also able to create its own real-time index for each currency pair that is used to identify what is the best direction and target.

About fundamental analysis, the AI makes a correlation within the economic calendar to find news data that can affect specific currency pairs. In doing so, the algorithm can identify the following scenarios:

  • Market inactivity to not trade or send signals.
  • Avoidance of certain risky entries.
  • Measure favorable patterns after-events.

Our algorithm is a single multi-layer system integrated with some of the largest forex brokers via rest API and FIX protocol, and its parameters are constantly optimized to reach the best APY, Sharpe Ratio, and Drawdown. However, it does not change its core rules over time. We have a high precaution to avoid overfitting our models to any price data.

We use two main approaches to AI. The first one is a search of maximum return and minimum drawdown using a Multi-Objective Particle Swarm Optimization, which can validate our indicators in a sliding window method to guarantee what are the best parameters for a certain encoding of indicators.

In this way, we selected the set of indicators to use in our second AI, settling a time series classification via Convolutional Neural Network, which the architecture is similar to an AlexNet with data augmentation, based on our own math concepts. This second AI indicates if it is the buy, sell, or hold, for given security.

Our most effective indicators are made by ourselves, primarily developed in Python as a real-time algorithm and based on out-of-sample backtesting. To evaluate our model, we chose the MQL4 language to demonstrate our results on the MetaTrader 4 (MT4) platform. Our main libraries are Matplotlib, NumPy, Pandas, Parallelism with ray remote, and Talib.

How to trade forex with AI

There are two ways to invest with our AI in forex:

1. Automated with AI trading. Check out the 3 steps to trade automated with our AI.

automated trading with ai bot

By trading forex automated with AI, you will save time and improve your performance without monitoring the market and managing trading platforms.

With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.

Automated AI trading benefits 🏆

  • Setup in 3 minutes.
  • Totally hands-off, from anywhere.
  • Invest from just $1.
  • APY of 43% over the past 10 years*.
  • Capital protected under the brokers
  • Lightning-fast execution & no slippage.
  • No commissions, no management fees.
  • Portfolio with 40 different automatic strategies.
  • No MT4/MT5 or other platforms required.
  • Test with a risk-free practice account.
  • Trading results directly on our dashboard.

Don’t you have a broker account yet? Our AI is integrated to trade automated with the brokers Oanda and FXCM. Click here to open an account with FXCM or here to open with Oanda. Those are some of the best forex brokers in the world.

2. Manually with AI forex signals.

Wiseinvest also provides AI forex signals that perfectly fit into MT4MT5, and any trading platform. To trade with our AI forex signals, you must simply copy the data you receive from each real-time signal into any forex brokerage account of your choice.

There are five unique variables for each AI signal, and each must be copied exactly, to match the performance of the signal as close as possible.

Each AI forex signal alert consists of the following five data points:

  • Symbol (forex pair)
  • Direction (long or short)
  • Position size (number of units or lots)
  • Take profit (price level to exit with maximum gain)
  • Stop loss (price level to exit with maximum loss)

Check out how to trade with our AI forex signals.

  1. Subscribe to a Wise-Plan.
  2. Open a Brokerage account. Check this article about the best forex Brokers.
  3. Set an amount and a position size on our Wiseinvest dashboard.
  4. Our AI will send you real-time trading alerts by email and Telegram.
  5. Copy the signals and paste into your Brokerage account.

All forex signals are sent every time that our AI trading system identifies a new trading opportunity. Our trading strategies are developed on a variety of time frames such as 4 and 8 hours.

Wiseinvest AI forex signals are Market Orders and you do not need the entry price. You can copy each signal while it is available on our dashboard. We do this way to assure that traders will just place signals while they are good to be traded.

You can trade forex with our free forex signals clicking here, or with our Premium subscription that provides you unlimited AI signals and automated AI trading in partner brokers. Whether you are a beginner or a professional forex trader, our AI trading system can help you save time and improve your trading performance. Get started with free AI.

When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate pips and change the leverage in your forex broker account. Learn more about leverage in forex trading clicking here.

What happens after linking a forex broker account with AI trading

  • The AI will automatically invest on average every 12 hours in your account.
  • There will be up to 60 trades per month (Monday – Friday).
  • You can enable and disable AI whenever you want.
  • Check your trades on our dashboard or the brokerage.
  • You can link more than one broker at the same time.
  • You don’t need MT4 / MT5. It’s all on our dashboard.
  • Your capital is protected under the broker.
  • Your personal data is protected by us.

Would you like to try our automated AI trading for free in a risk-free demo account? Get started free here.

Eliminate constant market monitoring and emotions in trading

Our automated AI trading system monitors and take decisions and executes trades based on market movements. So, the need to continuously monitor the market manually during trading hours is not required. Also, when using AI to trade forex, you will put aside any trading mistakes caused by emotional interference. It turns out that forex trading is an activity that requires impartiality and cold emotions, and most people lose money on Forex due to anxiety and impatience. With AI trading, you won’t have that kind of concern.

How much do I need to trade forex with AI?

You can start in forex trading with free AI forex signals or AI trading from just $1 through some of the best forex brokers. It is moreover possible to test using a risk-free demo account with our AI trading structure. Regardless, to do a capable peril, the board in authentic records, we suggest you start from at least $100.

What is the best forex broker to use AI trading?

To define which forex broker you should choose for using our automated AI trading, it is important to consider the following aspects.
  • Where are you from? For example, Oanda accepts US accounts, but FXCM does not. On the other hand, FXCM accepts accounts from some countries where Oanda does not.
  • How much do you have? With Oanda, you can start at $1, and FXCM is ideal if you start from at least $300.
  • FXCM sometimes provides higher liquidity volume and lower spreads than Oanda, which are vital aspects of the success in forex trading. But it can also vary.
We are confident that Oanda and FXCM are among the top 5 best forex brokers in the world and our AI trading works perfectly through any of them. Then, we suggest you take your final decision taking into account where you are and how much you have.
If you are considering trading with our manual AI forex signals, we would also like to suggest XTB, which is one of the best forex brokers in Europe.

Why trust Wiseinvest instead of other trading solutions

These are the main reasons why forex traders at all levels trust us, rather than other trading solutions.

  • Our automated AI trading is efficient, simple, safe, and affordable. You do not need MT4 or other complicated platforms to trade forex.
  • We are a legitimate and reliable company with extensive experience in finance. We combine 19 years of trading experience and extensive academic research in the financial markets.
  • Our AI outperformed the investment market with an average annual return of 43% over the past 10 years (2011-2020).
  • The automated AI trading works with some of the best forex brokers.
  • When using our AI solutions, all your money is protected by brokerage firms.
  • We do not have access to withdrawals from our customers’ accounts.
  • All of your data is encrypted and will never be shared.

Takeaways to implement in forex trading

  • Despite the popularity of forex robots, AI is the next-generation technology that is quickly changing industries and has now arrived in retail forex trading.
  • Artificial Intelligence has gained traction among traders and it is now the new generation of systems to trade forex.
  • Due to its ability to evaluate scenarios, learn quickly, adapt and make the right decisions or give accurate suggestions for decision making, AI can be a very powerful predictive tool in forex trading, if implemented correctly.
  • Wiseinvest provides helpful AI trading solutions to invest in forex. You can trade automated through the best forex brokers with AI trading or manually with AI forex signals in the forex broker of your choice.
  • You can get started with free AI forex signals and use a risk-free practice account.
🎯 We are engaged in democratizing the retail forex trading market through AI solutions. We work hard to provide financial education, allow anyone in the world to invest easily with Automated AI trading and free AI forex signals. Our AI platform is integrated with AWS, IBM Watson, and Google AI.

Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.

The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. FXCM warns that 74.74% of retail forex traders lose money trading CFDs.

The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.