Algorithmic Trading in Forex Using Technical Indicators: A Review

摘要

The Foreign Exchange market, or the Forex market, is dynamic and decentralized, where participants internationally convert from one currency to another to attain profit. Due to inflation, interest rates, and geopolitical events, the daily trading volume in 2019 was $6.6 trillion. With 24-hour access, the Forex market caters to a diverse cast of users, including banks, investment firms, and regular individuals. However, this constant availability poses some risks and challenges, which necessitate solutions like algorithmic trading robots. Algorithmic trading robots execute trades based on technical, fundamental, and sentiment analysis, offering efficiency and eliminating emotional biases. This paper aims to examine the literature on algorithmic trading in the Forex market with non-AI models, or models based on traditional technical indicators.