When it comes to a Gold fundamental automated trading bot, I think the idea is actually very interesting, but there’s an important distinction.
Gold doesn’t move purely because of technical patterns. Many of its major moves are driven by fundamental things like CPI, NFP, interest-rate decisions, Fed speeches, inflation data, and changes in the US dollar or bond yields.
Instead of programming a bot to simply say, “CPI is higher, therefore sell Gold,” you could build a system that looks at the forecast, previous number, actual release, market expectations, dollar reaction, and potentially the broader rate environment before deciding whether there is actually a trade worth taking.
And just as importantly, the bot should be able to say “no trade.”
Because sometimes the best decision after a major news release is not to enter the market at all. There’s also the execution side to consider. During major economic releases, spreads can widen, liquidity can disappear, and Gold can move extremely quickly. So even if the fundamental analysis is correct, the trade can still have poor execution.
For me, the real question is whether this approach can produce a consistent edge when tested with real market data and a verified track record.
There is currently no “fundamental” bot. That is the difference between fundamental trading and bot trading.
If you were to program a fundamental bot as things stand now, it would be so extremely slow to execute that the opportunity would be lost before the bot even had a chance to react.
Quantum computers could solve this, but we’re not there yet.
So it’s completely pointless right now to spend energy and time building a fundamental bot.
1 Like
Thanks for sharing your perspective, I appreciate it. I’m more curious to hear how you define a fundamental bot, and what you see as the main cause of the slowness. Is it the speed of getting the data, the analysis, or the order execution?
I’ve been experimenting with this using the economic calendar. When a scheduled event is released, the bot passes the actual figure, along with the forecast and the previous number, to an AI model. The model analyzes the result in context base on current economic events and returns a sentiment as positive/negative/nautral.
Positive with higher confidence mean we will buy the affected currency againt the negative sentiment currencies for example USD = positive, EUR = negative or nautral
Then the ai will spawn a bot that does a technical analysis and execute EURUSD sell order, the spawned bot then manage the positions and kill itself when the position is close
If you’re interested, I’ve shared more details in my bio. I’d welcome any feedback.
That’s not trading fundamentals, it’s trading news. It would be unlikely to be fast enough to catch the instant move, which often retraces so you’d probably lose very quickly
Fair point. It’s closer to news trading than pure fundamentals. I agree that chasing the instant spike is a losing game for retail. The idea I’m testing is whether AI can judge the context of a release, like the surprise versus the forecast, the dollar, and yields, to decide if a move is likely to continue or fade, or if there’s no trade at all. It may not work, which is why I’m testing it on real data.