Machine learning can help us optimize automatic trading strategies. By studying the huge amount of past information, we can identify patterns that help us predict the evolution of the market to a sufficient extent. This is of course what some traders have been doing for a long time but the automatization of the process allows us to find much better strategies and much faster than it would take a human. Here we propose a speculative strategy that has been successfully tested and demonstrates the possibilities brought by machine-learning in forex.
Automatically finding a winning speculative strategy on eurusd

EUR/USD is a very lucrative pair for a speculative strategy built from machine-Learning algorithms, although our method is able to find winning strategies on other instruments and some that work across several instruments, the strategies developed for EUR/USD give the best returns. This is how the strategies are built.
We cannot feed the actual price to the algorithm because we want it to recognize patterns independently of their height on a chart. We therefore feed it price movements, from high to high and low to low (better than open to close). This is a simple kind of indica…
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