#StockMarket #Trading #REX ⠀
👉 The Forex Zoo: watch out, robots! ⠀
Gone are the days of the "Barrow boys" - rowdy traders who spent their days shouting out sentences in slang, calling the Bank of England an "old lady" and £1 billion a "yard of cable." Algorithms now drive over 75% of trades in spot FX markets, replacing the noise of traders with the hum of computers.
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The COVID pandemic has provided a strong impetus: until 2019, only 22% of hedge funds used robotic
trading decision-making systems; now, AI technology is used by more than 70% of institutions.
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For example, inside BNP Paribas SA, Viper, Iguana, and Chameleon are code names for algorithms that live inside REX, a reptile-themed
trading tool. REX is designed to make life easier for hundreds of hedge fund managers and has cemented BNP's advantage in the European spot market.
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REX's algorithms have different "characters" and purposes. Clients can use Viper when they want to be aggressive in their trades and exit risky positions quickly. Chameleons are better suited for large trades, allowing them to enter the market slowly without creating large swings.
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Iguana is designed when clients know they want to make a particular trade within a specific time frame but are unsure what range will be most profitable. Algorithms change depending on the time of day, liquidity, and currency pair.
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It is increasingly difficult for conventional traders to compete with global automation. But as long as the risks of algorithmic
trading are managed by live humans who can stop the process, you and I can catch a piece of the loot. To do so, all you have to do is swim alongside the sharks. And to find out exactly where these predators swim, we have to analyze market reactions using standard methods.
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Do you use algorithmic trading? Have you been successful?
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Profits to y’all!