The Future of Forex Trading: Algorithms, Artificial Intelligence, and Social Forex Trading

Abstract

In the 24/7, increasingly fast-paced world of geopolitical events, trading currencies requires the monitoring and absorption of a great deal of data. In previous decades, the knowledge necessary to evaluate market conditions depended on fewer variables and forex trading was less influenced by global events. The globalization of communications through the internet enables instant transmission of data, noise, and emotions. It is more difficult than ever to separate the signal from the noise. Where once price filters were enough, today, event filters and emotional filters are necessary. The markets are open systems and are almost irreducibly complex. The human currency trader is more limited than ever in absorbing global data. Certainly, the use of systems to assist human trading is the future of trading. In fact, many references point to the fact that 70% of all trading is algorithmic. Further confirming the decline of the “trader” is a scan of job openings in the forex field. There is a preponderance of references to coding skills and financial engineering experience (see https://www.efinancialcareers.com/jobs-Trading.s035).