There have been several Forex trading robots which claim to be using advanced artificial intelligence in there software and some claim, more than 95% accuracy in there trading signals - so what is artificial intelligence , can it be applied to Forex trading and can it help you make bigger profits – Let's find out.

The definition of artificial intelligence is:

The capability of a device to perform functions that are normally associated with human intelligence, such as reasoning and learning from experience.

The Limits Of Artificial Intelligence

Currently, there are no computers ant where exhibit full artificial intelligence (that is, are able to simulate human behaviour). The human brain can think for itself and as yet, no computer can even get any where near the human brain in terms being able to think, learn from experience and act upon this experience across a variety of subjects but there has been some limited success, in making machines which can perform basic tasks.

In the area of robotics, computers are now widely used in such areas as car assembly plants, but they are capable only limited tasks. Robots still have huge difficulty identifying objects based on appearance or feel, and it was only recently that a robot was developed which could actually fold a towel correctly and this was seen as a major breakthrough in artificial intelligence software.

The Future and a Robot that Can Think for Itself

In the 1960's, I remember seeing a program on the future, where we would all have robots to help us clean the house, shop, baby sit the kids etc but we are no where near to having this kind of robot, as we have just seen from the above examples.

Forex Robots Predictive Software

The Forex trading robots which claim they can think for themselves to predict Forex price movements cost normally around $100 or so and claim they come with advanced Artificial intelligence but they don't and never have real time figures that are audited to back up there claims, its good copy though and helps to sell systems. The reality is that even the most advanced artificial intelligence software, can cost millions of dollars and can perform only limited tasks, so if you think a Forex robot costing under a hundred dollars can beat the Forex market your in for a disappointment.

The Reality of Forex Trading and the Limitations of Software

Forex trading is a market of odds not of certainties, you can never predict where prices are going and the market can never be beaten and the reality is:

In the last 50 years, we have seen computer and software technology make huge advances in terms of speed and number crunching ability but in terms of Forex, the ratio of winners to losers remains the same – 95%. So advances in technology have not helped increase the ratio of winners.

If you want to win use a simple trading system with just a few rules and it will beat a complex one, simply because it has less elements to break.

So trade the odds, keep your system simple and robust and you, will easily beat the Forex robots which claim they can predict the market in advance.