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Some considerations regarding AI in the forex market
We consider that as long time the movement of the price depend on more factors, first is to be analyzed the impact of those factors(e.g. Fundamental analysis , Technical analysis, Economic calendar) in correlation with the pair to be study and only after that analysis is done to start and extract some basics conditions.
We all know that if we discuss about economic calendar, very important factor is the forecast (which at the time for release of that –important-announcement the forecast is already included in the price) as important is release vs forecast.
Trying to apply AI over the capital market should means some strictly rules to follow such as:
Each currency has it’s own characteristics
One pair of currency, has both currencies characteristics
One pattern(e.g H&S) does not have the same impact/accuracy on all currencies pairs
The genetic program should extract the trading rules(long, short or range)
Each currency should be analyzed separately and together with it’s pair
Not always, if a long position isn’t to be taken means short one (it could mean sideways-range)
Fibonacci levels should be taken in consideration.
And so on
We should consider that being a dynamic market with dynamic rules small to medium time frames would be ok to investigate
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DON'T THINK IN A BOX JUST BECAUSE THEY TOLD YOU SO
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