What will happen in the future when AI trading becomes mainstream [From the perspective of an EA developer]

In recent years, with the development of AI technology, AI trading has attracted attention. If AI trading becomes mainstream in the future, what impact will FX traders face?

1. Conventional EA development methods may become obsolete

Current EA development mainly analyzes past market data to generate buy/sell signals based on that data. However, if AI trading becomes mainstream, AI will generate trading signals by analyzing not only past data but also real-time market data, news articles, social media posts, and any other information.

Therefore, EAs based on traditional data analysis methods may become unable to compete with AI trading. In the future, FX traders will need to choose which AI to entrust with trading rather than building a portfolio with EAs.

2. The hurdles for EA development may decrease

With the advancement of AI technology, the hurdles for EA development may be lowered. Currently, EA development requires programming skills and financial knowledge, but using AI technology, even without programming skills, you can easily develop an EA by using generative AI.

Therefore, the number of AI traders and EA traders is expected to increase, revitalizing the FX market.

3. Competition in EA development will intensify

If the hurdles for EA development fall, the population of EA developers will increase, and competition in EA development will intensify. Therefore, EA developers will need to create higher-performance EAs and differentiate themselves.

4. The FX market may become a money game

With the spread of AI trading, there is a possibility that the FX market will become a money game. Currently, the FX market is said to be effective with technicals and anomalies. However, as AI trading becomes mainstream, FX price movements may resemble those of crude oil, natural gas, and individual stock manipulation stocks.

In this case, financial authorities are expected to frequently monitor and intervene in the currency market to stabilize prices.

5. The role of EA developers will change

If AI trading becomes mainstream, the role of EA developers may expand beyond just developing EAs to include new responsibilities such as managing training data for AI and evaluating AI performance.

Summary

If AI trading becomes mainstream, traders and EA developers are expected to face various impacts. EA developers should master AI technology, develop AI-powered EAs, and traders will need to compete with newly developed EAs (AI trading).