Last update 2020.10.19
The coronavirus caused by Covid-19 is a global pandemic that has shaken world markets into nearly every developed economy 😷. In this article, we will explore how the foreign exchange (forex) markets were impacted and how to invest during coronavirus times.
- Why forex has been the investment choice during covid-19
- The impact of coronavirus on Stocks
- Examples of trading forex during coronavirus times
- How to invest during coronavirus
Despite the financial purpose of this article, we would like to express our condolences to those who, unfortunately, have lost their dear friends and relatives.
🎯 Our mission is to help you invest in forex efficiently and improve your results. Get extra forex trading insights from leading finance experts on the trading Academy and on our free forex Telegram channel.
💹 When trading forex, we suggest you consider long term results.
Why forex has been the investment choice during coronavirus 😷
Investors around the world are finding it difficult to diversify their portfolios in this unstable global environment. The global pandemic has reversed the course of major economies and has exacerbated declines in growth in, already problematic, emerging market economies. During these challenging times, investors, asset managers, hedge funds, family offices, and high net worth individuals are turning to forex trading.
The Coronavirus has taken a toll not just on jobs, and people’s psychological and physical health, but has caused countless deaths, and has resulted in severe economic harm which has been reflected in the prices of assets in global financial markets.
But while the world is arriving with the “new normal” of things, investors see the forex market as a good option to diversify their investment portfolios.
- Forex sessions are 24/5 from Sunday at 5:00 pm Eastern (ET) through Friday 5:00 pm.
- Forex is the largest and most liquid financial market in the world.
- Due the large volume forex offers great opportunities to invest.
- Due to a wide variety of existing Forex brokers, Forex has become increasingly affordable.
- You can start trading forex from just $1 or with a risk-free practice account with a lot of forex brokers.
- It’s possible to invest automatically in forex with AI trading.
Global stock market corrections
Since the novel Coronavirus was first announced at the end of last year, the markets that were initially affected were the stock exchanges in China, where the virus was initially discovered in Wuhan.
As the number of reported people infected rose across China and neighboring countries rose, the highly-contagious virus went from being a local epidemic to a world pandemic, and international markets began to exhibit similar trends.
US bear market and flight to cash
Fast forward to Q1 of 2020, and global equity markets along with commodities and nearly every asset including gold and even bitcoin had taken a steep dive, as investors sought cash at the ultimate safe-haven asset.
Just days after the WHO declared COVID-19 to be a pandemic, and after a brutal week for the major US stock indices, on March 15th the US Fed held its second emergency meeting to cut interest rates to boost growth, in anticipation of the economy slowing due to the Coronavirus pandemic.
Interest rates cut to boost the slowing global economy
By April 2nd, over 1 million cases were reported globally, and social-distancing measures in many countries have brought many aspects of modern-day life to a halt, with people staying home, and going out only for essential tasks.
This action of lowering rates in the US added fuel to foreign exchange (forex) markets which were already volatile due to volatility from other asset classes. Dozens of countries followed suit as their central banks lowered interest rates, in anticipation of a global economic slowdown.
Quantitative easing and stimulus packages
In total, lower rates together with various economic stimulus packages that were announced will have the effect of printing trillions of US dollars and will put a massive supply of currency into circulation.
Other countries are also creating similar stimulus and quantitative easing programs, as governments react almost in unison to the pandemic.
The forex markets have since experienced significant volatility, even in the major currency pairs which are the most liquid, such as the EUR/USD, which can be seen here below on a yearly chart where the volatility spikes suddenly with massive price swings at the end of Q1 2020:
Forex market volatility throughout the month of march
The same type of swings can be seen in other major currency pairs, compared to the EUR/USD, during March when global equity markets suffered their largest single-day declines in decades. Below is a chart of the USD/JPY pair, from TradingView, using rates from OANDA:
A similar move can be seen in the USD/CHF pair, which during the month of March also had significant swings, moving several hundred pips in one direction before swiftly reversing, and repeating again to a lesser degree.
Trading in conditions like these can be very stressful and difficult, as traders can get caught in emotional decisions and deviate from a well-thought-out plan.
Using Artificial Intelligence to trade forex during volatile times 🤖
This is why Wiseinvest has created automated AI trading and AI forex signals, to help take the guesswork out of identifying when to buy and sell, even when the markets are the most volatile, such as during the Coronavirus pandemic.
Below is another chart of the GBP/USD, which looks slightly different than the rest of the charts, as the UK took a delayed or different approach to deal with the Coronavirus, and was one of the last major economies to issue stay-at-home orders to its citizens to help curb the spread of Covid-19.
Wiseinvest’s suite of over 40 forex trading strategies is controlled by Artificial Intelligence (AI), which was the result of years of research and development.
Wiseinvest AI trading and AI forex signals identify trading opportunities amidst Coronavirus-related volatility
Adaptability is crucial for an automated trading system, and the use of AI and our ability to incorporate fundamental data into our trading system separates Wise AI trading system from the many forex strategies out there that are only using technical analysis, and thus are not aware of breaking news events that can drive markets almost immediately.
This makes Wise AI trading forex system versatile and adaptable, which are two features to look for in a trading methodology during volatile markets.
The best way to invest during coronavirus
In complex times, we need special tools to invest in. There are two ways to invest with our AI in forex and reach for better outcomes during coronavirus:
1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.
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 40% over the past 13 years*.
- 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 broker Oanda. Click here to open an account.
2. Manually with AI forex signals.
Wiseinvest also provides AI forex signals that perfectly fit into MT4, MT5, 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.
- Subscribe to a Wise-Plan.
- Open a Brokerage account. Check this article about the best forex Brokers.
- Set an amount and a position size on our Wiseinvest dashboard.
- Our AI will send you real-time trading alerts by email and Telegram.
- 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 by clicking here.
What is the AI performance in forex trading?
The Win Rate of our AI varies according to the period and can reach up to 95%. The performance is based on the efficient frontier measurement metric, which means that our model is profitable whenever the Win Rate is greater than 60%. All strategies of our AI trading system seek stable returns and sufficient results to achieve an average return of 40% per year (APY), without the use of high leverages.
We understand that what matters in forex trading is the final result. Thus, the investor needs to consider that Win Rate is not always the best metric to measure performance in forex, as other signal providers disclose. For instance, out of 100 trades, only 1 trade may be enough loss to make the 99 trades not profitable. In this case, the Win Rate would be 99%, but the final result would be unfeasible (negative).
We focus on the return of 40% of APY and not just on Win Rate.
It is essential to observe that forex brokers may charge spreads, commissions, and overnight fees in your trading account, and these factors can affect the AI performance. You can check our forex trading track record to understand more about AI trading performance by clicking here.
How much do I need to trade forex with AI?
You can start in forex trading with free AI signals or an AI trading account and deposit just $1 in the broker. It is also possible to test using a risk-free practice account with our AI trading system. However, to do efficient risk management in real accounts, we suggest you start from at least $100. Notice that some forex brokers require different initial deposits to trade forex.
What is the trading strategy of our AI?
Our AI strategy is the combination of different AI trading systems, with more than 100 features, that define 40 different strategies which simultaneously consider: Quotes of the 28 forex pairs, Supports & Resistances in different time frames, Trends and Counter-trends, Cross-indicators, Index of each pair, Economic Calendar, Investors Sentiment.
Our AI analyzes those fundamental, technical, and sentiment factors that affect forex trading, and all criteria are evaluated in real-time using different weights. After completing the analysis, the choice of the signal emission strategy is made considering the increased likelihood of short-term profit and the amount available for investment.
Using technical analysis, our algorithm considers not only the patterns of various trends, including support and resistance levels and cross-indicators, but our AI 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.
In relation to fundamental analysis in forex, the AI makes a correlation within the economic calendar to find news data that can affect specific currency pairs.
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.