Please, With the Advent of AI technology, Humanoid trading robots, massive influx of AI Robots technology, HIGH frequency trading algorithmic trading, what is the fate of retail discretionary forex traders in about 50 years above from now???
…and would Retail forex trading still be a dream career for those passionate about it, ?? And finally, would Retail forex traders still have the opportunity to make money from trading as they are doing today???
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Small-scale retail spot forex trading won’t last nearly as long as 50 years, IMO, but that has nothing to do with AI at all: it’s for the reasons discussed in this current thread.
Don’t overestimate AI. I have done some research with Neural Network (NN) since 1999. I implemented NN on stock market prediction. I’m still using it for now and, it’s not as good as how it was in my imagination. But after all it’s still a good tool.
For business, it will be helpful. For speculation, rely on AI will be suicide. I have been developing various model to predict the market. In the end, none of them can work well. Market is too dynamic. AI needs a lot historical data to learn. When the pattern of market changes, the model will be dull. You need to train the model again. The training process is also frustrating. If your data is too specific, the model will overfit. The AI will be too smart and refuse to work. If you data is bad, the model will be under fit, the model becomes extremely stupid, making nonsense positions.
So my conclusion for now, there is still no sufficient method to predict market.
AI is good in forecasting, but it’s not for predicting. Base on historical data, AI will forecast the future condition and those are statistical base. When the data is bad, the forecast will also bad.
The closest thing to smart trading system by using quantitative trading (quant trading). My opinion, no system can beat quant trading for now. AI is still far far beyond. Probably we need to wait quantum computer available in the market. To have smart AI, we need a machine with extremely high computing power. Don’t make assumption what ChatGPT does. The ChatGPT has no prediction power at all, ChatGPT learn context and communication pattern. It’s similar to how a baby learns to speak from his/hers environment.
Trading is a very dynamic skill for now. Human brain consists of millions of neurons, far far superior compare to computer. Some job can be replaced by AI now, but not all.