Brian Isaiah Martinez#23

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How does machine learning improve forex forecasting?

Machine learning (ML) models learn from historical and real-time data to predict price movements. Institutions deploy ML for currency prediction, arbitrage, and sentiment analysis. Retail traders use simplified ML tools or Python libraries. Benefits: ability to process nonlinear patterns traditional models miss. Risks: ML models fail during regime shifts (e.g., crises) when past data loses relevance. For traders, ML is not a crystal ball but a probability enhancer—when used with risk management, it improves forecasting accuracy.