Basics

How to Trade Forex with Artificial Intelligence


You’ve probably already heard about Artificial Intelligence (AI) and how it is helping people across various industries in many daily activities. Here at Wiseinvest, we developed a powerful automated trading system powered by AI, which is able to make projections about the forecast of forex market prices.

With the use of our AI, we create what we call democratic investing. That way, anyone in the world can trade efficiently and increase their chances of achieving above-average forex returns, regardless the level of investment experience. So, whether you are a beginner or a professional trader, we can help you trade forex and improve your performance with artificial intelligence.

What is AI?

Basically, AI is a field of computer science where the use of code and math allows software to behave in a way that demonstrates intelligence when faced with complex problems.

There are different branches of AI, such as Deep learning, Machine learning, and Natural Language Processing (NLP), although many of these fields can overlap.

In addition, certain uses for AI may be applicable only to images and visual graphics processing, whereas other AI-based algorithms process raw data such as number or raw machine code, known as binary data.

In summary, AI enables computer-driven machines to learn, quickly evaluate scenarios, adapt, and make decisions, and compute results.

AI can be smart and intelligent, learning from success and past mistakes. A key feature of AI, 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 is also able to draw predictions about the near future, based on specific historical data, such as analyzing weather data or forex trading patterns.

Unlike humans or other technological resources, AI can make an enormous amount of accurate decisions in a fraction of the time, down to milliseconds.

These skills make AI a very powerful tool for use in the financial markets.

Depending on the structure of the math algorithms used with AI, certain calculations can be made in linear time, compared to exponential time, often referred to as Big-O notation. Here is an example of various problems that AI can tackle and their respective Big-O notation:

trading-artificial-intelligence

As we can see above, certain operations can take much longer even when using AI, depending on whether the problem can be considered to require O(n!) computations or possibilities to go through, compared to a faster operation such as O(n).

Of course, the machinery used also matters for a given AI-powered system, such as the amount of Random Access Memory (RAM), and the speed of your Central Processing Unit (CPU) or Graphical Processing Unit (GPU), including the number of core processors available and the ability to parallel process data.

Furthermore, there can be a huge different in speed if you are running low-level code on the command line, compared to having to use a third-party platform or at the application level.

Wiseinvest has taken steps to help ensure that our AI-powered trading system can handle a multitude of circumstances in the financial market, regardless of the amount of tick data that we are analyzing from the forex market.

trading with wise signals

The challenges to traders

Very experienced traders usually make money by investing based on a set of systematic tactics, using technical and fundamental analysis, along with sentiment analysis.

However, to make money actively, traders need to be present behind their trading software to monitor and manage their investment strategies. The challenge for them is that the market is:

  • Huge (lots of information)
  • Fast (multiple updates)
  • Volatile (significant changes)

The standard approach to using trading software for forex or other instruments may not be enough for you to handle a great variety of financial market opportunities automatically.

In other words, to be more accurate in you trading operations, you need more data analytics, experience, strategies, a better understanding about new economical influences, and more computational power. So, this set of problems can be resolved by our AI trading.

Building an AI-powered system

Even  high-frequency trading (HFT) companies faced significant technical challenges related to the speed and size of the data sets they employ.

For example, “tick data” (which contained price data for each price update down to a fraction of a second) for a day’s worth of trading on an instrument can contain around 60 million lines. Each line reflects the state of the broker’s order book.

Supposing that an HFT company was trading 10,000 instruments in various locations. This meant that one day of trading data contained approximately six hundred billion lines.

Files of this size were too large to be handled in software programs like Excel. The single instrument file can take hours to load in other programs like MATLAB, and cause them to freeze or crash.

Now, if you’re thinking about making a Nasdaq assessment, that stock exchange alone has nearly 3100 equities. It’s an enormous job.

More importantly, this data had to be analyzed and acted on in microseconds as it arrives in real-time, not merely loaded for analysis at the end of the day. Beyond overcoming these data processing problems, a HFT firm needs to find a profitable trading strategy which is another enormous challenge.

Experience helps, but doesn’t resolve the problem

I have traded for more than 14 years – stocks and forex – and besides my personal experiences, over this time I took a bunch of very useful financial and trading courses, to learn with the best experts in the world in this field. I learned what are the secrets of trading and what the very successful traders do differently.

Additionally, I have tried most of the best brokerages and supportive tools for trading: automated indicators and charts, Robo-advisors, trading bots, and so on.

The balance is positive: I took more profits than losses. However, the results could be better and faster, if I had all the best investment strategies available and super powerful software. I would have also saved a lot of time.

The main point is: a very intelligent and experienced professional without AI-based software, is naturally limited. Even the best investor equipped with successful strategies sometimes loses money, and while the same can be said for AI, you retain more control in many cases.

This is because software without a properly trained AI does not learn to react in unpredictable scenarios. This ends up taking the professional to an unknown space where the result can be a disaster.

How to apply AI to trade

What we here at Wiseinvest.ai created is a powerful AI forex trading system which bundles the best investment strategies to help traders target above-average profits over in the forex market. Read this article about forex.

We would say that it is the investment democracy, because our platform can helps everyone – non-experienced, hands-off and experienced investors. With us you can trade better than a professional, even if have never invested before. All that is required after you subscribe is to just link a broker account for trading automated and enable the AI-Trading. It takes just 3 minutes.

The best way to trade forex

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

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.

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 and you can monitor the AI trading performance directly on our dashboard.

Trading manually with AI forex signals.

If you want to manually invest in the broker of your choice, you can also use our AI-Signals system. It’s just copy and paste each signal our AI send to you into your favorite forex broker.

Each AI 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)

You don’t need to be an expert, or if you are a professional trader, you don’t need to watch candlestick charts, spend time developing trading strategies and following the market for entire days (sometimes missing nights of sleep) to invest.

Our AI is able to evaluate the best forex opportunities daily, and trade automatically for you. Or, as mentioned before our AI can also send trading signals in real-time on our web-based platform, and alert you via email. It will save you time, make you have peace of mind, and help you to have more success in trading.

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.

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.

How much profits you can make

To better understand what is success at trading, in stocks, the S&P 500 average historical annual return is 8% ~ 12%, and in 2016 the overall average was 5.4%. According to Bloomberg.com and hedgefundresearch.com in 2018 the best 20 Hedge Funds earned 16.66% on average.

Meanwhile, our AI-powered trading system reached 38.21% annually on average over the past 4 years, with an accumulated compound return of 2.025% from 2011 to 2019. And it is improving even more because we are daily nurturing the knowledge basis with new strategies, and our system is getting smarter each time.

Click here to find out how we calculate our performance. You can also check out our Track Record page, related to live-trading on real forex brokerage accounts. Yes, we trade in live account using our own AI system and money.

The following chart is the performance of our signals from 2011 to 2019, on an out-of-sample basis. You can try the profit calculator since 2007 with our AI trading system clicking here.

forex market trading

There are also some staggering hedge funds trading with HTF and quantitative trading,  sometimes earning returns of about 40% as well.

However, such funds or proprietary trading firms are limited to just a small group of investors, and have complex or restricted processes to get access, even with a large amount to invest. They can also have many hidden fees.

Even though, investing in hedge funds does not exactly mean success. Many HFT companies get annual returns under 10%, and all of those lose money somewhat (like any system, it is not just profiting all the time). And in this case, who pays the bill? The Client. Therefore, you always have risk.

Wiseinvest aims to be affordable, and gives you access to free content and if you are considering forex, you may start investing from just $1. You may also enjoy our free financial education on our platform to learn best practices on trading, and subscribe to AI-Trading or free AI-Signals when you are ready to start following our trades powered by AI.

Takeaways

  • Evaluating an enormous quantity of analytics data for trading is very complex, costly and time-consuming.
  • The good news is that Artificial Intelligence can help you invest better. 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, if implemented correctly.
  • If you want better results from investing in forex, Wiseinvest provides automated AI-Trading and real-time Forex signals, plus financial education content, wherever you are in the world.

We are committed to offering the best results and democratizing the retail forex market. We work hard to provide financial education, allow anyone in the world to invest easily with the broker of their choice with free AI signals, even at $1.

For those who do not have time to trade or for those who are already professionals, our tools will make your life easier and help you get better returns. It is just link your broker account and enable the AI-Trading. We do the hard work so you can get a good night’s sleep.

Our team is formed by experts specialized in data science, economics, commerce, statistics, mathematics and business. They created the most accurate technical and fundamental trading strategies to create an AI-powered trading system. Our team trained for more than eleven years and achieved brilliant results trading forex.

If you find it interesting or use AI for financial markets, subscribe to our newsletter and get in touch. We have a page to help people learn about investing for free. Follow us.

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. The forex broker Fxcm warns that 69.66% 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.