AI-Driven Hedge Fund Forex Trading Model Refinements Hedge funds rely on AI-driven forex trading models to optimize strategies, manage risk, and generate alpha in highly competitive markets. However, financial markets are dynamic, with changing correlations, liquidity conditions, and volatility regimes. To maintain an edge, hedge funds must continuously refine and adapt their AI-powered forex trading models. AI and machine learning (ML) provide advanced tools to enhance trading model performance, reduce errors, improve trade execution, and dynamically adjust strategies based on market conditions. Below are key refinements hedge funds implement using AI for forex trading. 1. Adaptive Machine Learning for Evolving Market Conditions A. Self-Learning Models • Traditional forex trading models often rely on historical data patterns that may become obsolete as markets evolve. AI-driven models can continuously learn from new data and update their parameters without human intervention. • Reinforcement learning (RL) allows AI models to adjust decision-making processes based on market feedback, improving over time as they recognize which strategies yield