Last update 2020.10.22
According to JPMorgan, nowadays, 90% of trading is run by computers, algorithms, and passive managers. This means that if you want to invest, you will need equivalent trading tools to compete. Fortunately, we can help you with our free AI trading system. So, this article will explain at a high-level how Wiseinvest integrates the latest advances in financial technology (fintech) to trade forex automated with AI trading in partner brokers or by AI forex signals in the broker of your choice.
🎯 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.
Given that Artificial Intelligence (AI) can be a buzzword and a misnomer, as many cases of layered-automated, are mistakenly called AI, let’s first talk about the background of automation in forex markets, and how AI is changing the investment market.
- Concepts about automation in forex
- How AI has changed the forex trading landscape?
- How to trade forex efficiently with AI trading?
- Why manual forex signals providers are no longer a good choice
- What are the best forex brokers to trade?
Automation and robots in forex trading 🤖
Over the two last decades, the foreign exchange (forex) markets were saturated with automated trading systems, from retail to institutional traders, thousands of forex robots across the world were touted as the next-generation technology that everyone wanted to have.
Unfortunately, many trading systems of the past decade were short-lived and eventually could not adapt to changing market conditions. As a result, many forex trading systems were overpriced and did not meet performance expectations.
Forex robots versus AI trading 🔬
Fast forward to today, AI is the next-generation technology that is quickly changing industries and has now arrived in retail forex trading. So, what is the difference between forex robots and AI trading system? What is the best forex trading solution?
A key feature of automated AI trading, compared to merely automating something, is the ability to understand which are the best and worst decisions to be made, for a given task and data set. AI can be smart and intelligent, learning from success and past mistakes. In other words, AI can adapt itself to find the best trading strategies for specif scenarios in the forex 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.
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 trading, simple 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.
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 manual AI forex signals service.
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.
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.
Training the Wiseinvest AI for forex
Below is an example of Wiseinvest AI’s thirteen-year performance during a backtest on out-of-sample data between the periods of 2006 – 2019. We have been using our integration with the largest and most reliable forex brokers to extract the data to train our AI for live trading.
In other words, below, you can see how our AI trading system would have performed over the historical data for the first time, without any further optimization.
Simulated historical results of Wiseinvest AI trades
Above are the results of thirteen years of our out-of-sample AI trading and AI forex signals performance. The average annual return of our AI trading system is 38.21%. We also invest in forex with our AI system through live trading accounts with our own capital.
🔬 🎯 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.
You can simulate your investments in forex with our AI clicking here. We calculate our returns considering that all trades are invested, and the amount is updated according to the trading results. When using the AI Trading, our AI automatically considers the account balance available in the broker and the trader does need to update its equity. If you are trading with manual signals, we recommend that you update your amount on the dashboard, and follow as many forex signals as possible.
*It is important to consider that broker fees vary and affect the net profit. The gross results displayed herein are not net of brokerage fees.
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.
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 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 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 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
Our 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.
Understanding Wiseinvest’ Trading Methodology
To define the set of 40 trading strategies that Wiseinvest uses, our AI ran 14 years of in sample back-testing on all forex 28 major currency pairs using deep learning, with more than 100 different features combined, including sophisticated mathematic models, different time-frames, technical indicators, currency filters, and economic news.
Wiseinvest AI assesses all strategies in real-time to find which one might best perform shortly given the current market conditions and recent historical price action.
The decisions are not pre-programmed but are rather made entirely by the Wiseinvest AI trading.
Our AI-Trading system automatically places up to 60 trades a month. In the case of trading manually, the AI forex signals alerts are sent on average every four hours to subscribers, from Sunday 5 PM EST until Friday 5 PM EST, which is during the forex trading week.
Our AI-Trading considers in real-time the balance and the type of contract the broker uses, to calculate the position sizes for each trade and customer.
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 automated 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.
Risk management using AI
When creating our AI trading system, our goal was to develop a set of strategies that perform well most-of-the-time, while managing risk by cutting losses as much as possible when performance targets are not reached for any individual forex trade.
For example, the average maximum loss of each trade varies between 0.6% and 1.27%.
Furthermore, the maximum potential-drawdown is an important factor, and our risk management is intimately related to this performance ranking metric. Additionally, Calmar Ratio and its variants are also taken into consideration by Wiseinvest AI trading.
All of these variables help Wise AI trading optimize its ability to manage risk not just for each signal, but also across the entire virtual portfolio.
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.
Concerning 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.
What is the AI performance in forex trading?
The Win Rate of our AI moves as shown by the period and can reach up to 95%. The introduction relies upon the capable wild estimation metric, which infers that our model is valuable at whatever point the Win Rate is more noticeable than 60%. All methods of our AI trading system search for stable returns and sufficient results to achieve an ordinary return of 40% consistently (APY), without the usage of high impacts.
We appreciate that what is significant in forex trading is the definitive result. Thusly, the money related master needs to consider that Win Rate isn’t commonly the best estimation to measure execution in forex, as other signal providers uncover. For instance, out of 100 trades, solitary 1 trade may be an adequate disaster to make the 99 trades not gainful. For this circumstance, the Win Rate would be 99%, yet the convincing result would be unfeasible (negative).
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 trading strategy of our AI?
Our AI methodology is the blend of different AI trading structures, with more than 100 features, that portray 40 proprietary strategies which simultaneously consider: Quotes of the 28 forex pairs, Supports, and Resistances in different timeframes, Trends and Counter-designs, Cross-markers, Index of each pair, Economic Calendar, Investors Sentiment.
Our AI looks at those fundamental, technical, and sentiment factors that impact forex trading, and all models are surveyed constantly using different burdens. In the wake of completing the examination, the choice of the signal transmission procedure is made considering the improved likelihood of flashing advantage and the total open for theory.
Using technical analysis, our count considers not simply the instances of various examples, including sponsorship and deterrent levels and cross-pointers, yet our AI is moreover prepared to make its own progressing record for each cash pair, that is used to recognize what is the best course and target.
Practically identical to fundamental analysis in forex, the AI makes an association inside the budgetary calendar to find news data that can impact express money sets.
What is the best forex broker to use AI trading?
- 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.
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
- AI is the next-generation technology that is quickly changing industries and has now arrived in retail forex trading.
- Despite the popularity of robots for forex, 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 for forex. You can trade automated through partner 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.
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.