Limits of algorithms highlighted by e-FX specialists
Algos and automation said to struggle in pricing complex macro events
While use of electronic trading and algorithms in the foreign exchange industry is generally perceived to have improved liquidity, e-FX faces challenges to wider adoption as it seeks to analyse ever more complex events such as the battle over the UK’s departure from the European bloc.
“For things like Brexit, it’s very difficult. It’s not something that a machine has seen 15 to 20 times, but something that involves very subtle information to take into consideration,” said Jan Novotny, an FX
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