ChatGPT, other AI tools could help forex traders but risky – Report – Nairametrics

A report by forex trading platform, Alpari, has identified various ways Artificial Intelligence tools such as ChatGPT and others could ease forex trading, but with a caution that it could also come with some risks to the traders. 
According to the report released on Monday, the integration of AI into forex platforms offers traders several benefits, which include allowing them to automate their trades, thus effectively ensuring they can trade anytime, anywhere, on a pre-established schedule within the AI.
It added that AI can assist traders in navigating risk management, making use of predictive analytics by breaking down massive quantities of data from historical trades and exchange rates to establish patterns and help traders identify the best time to trade. 
Alpari, however, noted the fact that AI tools sometimes use old and potentially outdated information to generate trading suggestions may pose risks for traders using it.  
In his comments in the report, Market Analyst at Alpari, Alexey Efimov, noted that only traders who have the right knowledge of how to use AI would gain from using the technology. 
The Analyst emphasized the need for traders to also use AI tools for their own education of forex trading.  
While noting that the benefits of AI in forex trading are immense, he said the tools also have some potential drawbacks. These, he said, include the use of old, potentially outdated information to generate trading suggestions.  
In terms of the impact the current era of AI technology has had on the Forex market, Alpari said the key difference is the development of FX ‘trading bots’ – algorithmic software that can automate trades using predetermined logic, which is based on historical market data and current currency values.
Additionally, Alpari’s report states that market analysts are currently trialling the use of AI as a way to effectively predict rises and falls in the market, utilizing large quantities of historical data to draw conclusions and recognize patterns. 
Samson Akintaro is a tech enthusiast and has over a decade experience covering and writing about the tech industry. He is currently the Tech Analyst at Nairametrics.
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