Just like with any other aspect of human life, artificial intelligence has also found its way into the world of trading. What’s interesting is that although the AI we know today surged only a couple of years ago, automated AI forex trading bots have been around for some time now.
Of course, these bots haven’t always been so impressive. In fact, the earliest AI trading tools contained mere sets of rules that couldn’t meet traders’ needs even half the time.
But that, dear friends, is for a long time ago. Since then, AI forex trading has had many breakthroughs and gotten better and better over the years. So much so that more than half of the trades executed now are automated, and more than two-thirds of all trades use AI in some sort.
You know what that means, don’t you?
It means that if you haven’t already hopped on the train, it’s time to grab a pen and paper and start learning what AI forex trading is all about.
What Is AI Forex Trading?
With this one, the name is pretty self-explanatory. AI forex trading refers to the use of artificial intelligence and smart algorithms to help automate forex trades ultimately. The word “ultimately” is a keyword here because although there technically are grounds to execute fully automated trades, which many traders do, it’s not fully facilitated yet.
So, most traders use some sort of AI assistance in their regular trading process. However, not all of them possess the ability to run fully automated trades.
Despite the fact that many technical and, quite honestly, super complicated factors go into making AI trading possible, the final bridge between traders and AI trading is usually AI forex trading software, AKA bots.
Since not many traders have the coding capabilities to design their own AI forex trading bots, many get them from third-party providers. After doing a quick review of how this whole automated trading thing works, we’ll dive deeper into these bots and let you know what the best AI forex trading software is.
How Do AI Forex Trading Robots Work?
The two main elements that make it possible for forex trading and AI to be in the same sentence are called neural networks and neural language processing (NLP).
Starting with neural networks, they’re designed to mimic the human brain. These networks started a revolution in the forex trading AI industry upon introduction. With these networks, trading with artificial intelligence turned into something bigger than having a bunch of rule-based algorithms.
Rather, neural networks had the ability to learn patterns, recognize trends, and make predictions based on historical and real-time market data. They made it possible for traders to analyze complex databases and find non-linear relationships, both common elements in forex trading, in a matter of seconds.
On the other hand, neural language processing (NLP) can analyze unstructured data, such as news articles, central bank statements, and social media posts. In other words, they’ve got traders covered when it comes to timely fundamental analysis.
Pros of Using AI Forex Trading Bots
Now that you know how cool it is to trade with AI, let’s get into the real thing. How can these AI forex trading bots help you make money?
Let’s find out.
- Trading Round the Clock: As a forex trader, you oftentimes face some time deficiency due to reasons like forex market hours, time zones, and sleep. AI forex trading bots make it possible for you to watch the market and analyze it 24/7.
- No Human Emotions: One of the deadliest mistakes any trader could make is trade with emotional bias. Whether it be anxiety, greed, revenge, or fear of missing out (FOMO), an AI forex trading bot has none of these emotions and can stay “logical” all the time.
- Super Fast Executions: AI bots have the ability to execute trades in a matter of milliseconds, not only taking advantage of the market but also ensuring you can trade at the price you want.
- Detect and Take Advantage of Market Inefficiencies: One of the best features of AI forex trading software is that it can detect market inefficiencies (when prices are not synchronized with the actual asset value) and take advantage of them quickly.
- Complex Data Analysis in Mere Seconds: These bots can quickly analyze and assess historical and real-time data to make informed trading decisions.
- Backtesting Capabilities: Since AI forex trading bots use a machine learning mechanism, they can be “trained” based on historical data and tested time and time again to improve.
- Customizable Trading Strategies: Traders who can make their own AI trading bots can set specifications for the bots to adjust them to their trading strategy and risk tolerance.
- Scalability: Trading AI forex bots are super efficient and scalable. They can run several trades across multiple currency pairs at the same time.
- Perfect for Risk Management: All the factors above make AI forex trading bots a superior option for risk management. They can be trained to go by complex risk management models, where they sort the trades based on their risk levels.
Best AI Robots for Forex Trading
So, let’s get into some quality AI Trading bots and software you can incorporate into your trading routines. Our picks of the top 3 automated trading tools are:
1- EA Builder
EA (Expert Advisors) Builder is a great tool for those who want to design and automate their trades without the technical knowledge to code. It’s a free AI forex trading software, but there’s also a premium version to help all traders with different needs.
With this tool, traders get to create their own strategies and indicators. For those who don’t know how to do so, EA Builder has provided video tutorials.
EA Builder was designed for MetaTrader 4 (MT4) and MetaTrader 5 (MT5). As these platforms are among the most well-known in the market, EA Builder was quick to get popular within the trading community.
The only downside to this forex trading AI bot is that there’s no live customer support for it and that its premium version could be a bit pricey (a $97 one-up for lifelong access).
2- Forex Fury
Forex Fury is one of the best and oldest forex AI trading software on the market. Not only has it been around since 2015, but it’s also proven itself with verified live accounts on Myfxbook.
With a win rate of 93% and above, Forex Fury’s AI trading bot can be used on both MT4 and MT5. Moreover, traders can customize their trading plans, such as take-profit and stop-loss levels, news filters, etc.
One of the best features of Forex Fury is that it’s tested on various live accounts, from those with $50,000+ capital to those as small as $100.
If you decide to purchase the Forex Fury trading bot, you’ll have to pay a one-time $229.99 fee. Although this might sound a bit (okay, a lot!) on the pricier side, it does give you access to the software, community, tutorials, and lifelong updates.
3- 1000pip Climber System
Last but not least, the 1000pip Climber System offers a delicious mixture of complex trading strategies and a super easy-to-use interface to help novice traders trade. Traders who do not have enough experience to customize automated AI trading strategies can use the 1000pip Climber System.
What makes this bot even better is that despite its simplicity, it also has verified account results on Myfxbook. This, in combination with the bot’s ease of use, the lack of minimum account size, and ample customer support makes the 1000pip Climber System a popular option with strong long-term performance.
Cons of Forex Trading with AI
Sadly enough, AI trading is not a land of dreams, and there are some disadvantages to it.
- Overfitting to Past Data: While automated trading could work wonders when it comes to historical data, there’s always the possibility of trading bots facing new real-time data that they just don’t know how to handle.
- High Costs and Maintenance: Whether you want to make your own AI forex trading bot or purchase a subscription to a third-party bot, it’s not gonna be cheap.
- Technical Failures Risk: Everything that can possibly go wrong on a technical basis can adversely impact the performance of AI trading bots, whether it be bugs, poor programming, or internet connection issues.
- High Energy Consumption: Running advanced AI algorithms requires powerful hardware and continuous operation, both of which demand excessive energy. This could leave a large carbon footprint, especially if the energy doesn’t come from renewable sources.
Final Words
Automated trading has been gaining a lot of traction in recent years, and for good reason. With AI forex trading bots being more advanced than ever, traders can count on them to continuously analyze the market for them, sort possible positions by their risk level, and make unbiased trading decisions.
Aside from designing your own trading bot, you can use third-party services, too. EA Builder, Forex Fury, and the 1000pip Climber System are some of the best players in the market, and they are all compatible with major trading platforms like MetaTrader.
Despite these advantages, AI trading is not perfect, especially when it comes to technical problem reliabilities and environmental effects. Still, they seem to be on their way to creating a promising future for the forex market.
If you wish to know more about trading techniques and different financial markets, visit our blog or social media pages today!
When traders use artificial intelligence to analyze the market, make informed trading decisions, and eventually enter and exit forex trades in a timely manner, that’s called automated trading.
The advantages of forex trading bots include 24/7 trading, no human emotions, fast executions, analysis of complex databases, scalability, and more.
The best AI Forex trading software in 2024 is EA Builder, Forex Fury, and the 1000pip Climber System.
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