#AIImpactOnForex
A. Ensemble Modeling
Combine multiple models (e.g., Random Forest + LSTM + ARIMA).
Helps reduce bias and variance.
Can be weighted by accuracy or performance during backtests.
B. Sentiment Analysis
Analyzes news headlines, social media (like Twitter), or central bank speeches.
Tools:
Natural Language Processing (NLP)
VADER, TextBlob (for sentiment scoring)
Transformers (BERT, FinBERT)
C. Regime-Switching Models
Recognize when the market behaves differently (e.g., during crises vs. stable periods).
Example: Markov Switching Model can switch between "volatility regimes".
D. Intermarket Analysis
Study correlations between currency pairs and:
Commodities (e.g., CAD/JPY vs. oil prices)
Stock indices
Interest rate differentials (yield spreads)
E. Event-Driven Prediction
High-impact events: central bank meetings, employment reports, GDP releases.
Predefine strategies like:
"Buy USD/JPY if NFP > forecast by 100k"
Automated systems triggered by economic calendar data
#AIImpactOnForex
A. Ensemble Modeling
Combine multiple models (e.g., Random Forest + LSTM + ARIMA).
Helps reduce bias and variance.
Can be weighted by accuracy or performance during backtests.
B. Sentiment Analysis
Analyzes news headlines, social media (like Twitter), or central bank speeches.
Tools:
Natural Language Processing (NLP)
VADER, TextBlob (for sentiment scoring)
Transformers (BERT, FinBERT)
C. Regime-Switching Models
Recognize when the market behaves differently (e.g., during crises vs. stable periods).
Example: Markov Switching Model can switch between "volatility regimes".
D. Intermarket Analysis
Study correlations between currency pairs and:
Commodities (e.g., CAD/JPY vs. oil prices)
Stock indices
Interest rate differentials (yield spreads)
E. Event-Driven Prediction
High-impact events: central bank meetings, employment reports, GDP releases.
Predefine strategies like:
"Buy USD/JPY if NFP > forecast by 100k"
Automated systems triggered by economic calendar data