#AITradingAffectsForex AI trading in forex can offer many advantages, but it also comes with several challenges and risks. Here are some common problems that occur in AI forex trading: 1. Overfitting & Poor Generalization AI models trained on historical data may perform well in backtests but fail in live trading due to changing market conditions. Solution: Use out-of-sample testing and adaptive algorithms that adjust to new market trends. 2. Sudden Market Shocks AI may struggle with black swan events like central bank interventions, unexpected news, or geopolitical crises. Solution: Incorporate news sentiment analysis and circuit breakers to pause trading during extreme volatility. 3. High-Frequency Execution Risks Slippage & Latency Issues – Orders may not execute at expected prices, especially in high-volatility conditions. Solution: Use low-latency infrastructure and trade with brokers offering deep liquidity. 4. Data Quality & Bias Poor or biased data can lead to incorrect AI predictions. Solution: Use diverse and high-quality data sources, including economic reports, order book data, and real-time news.