#CommunityAMA Overfitting Problems in AI Forex Models: Overfitting occurs when an AI Forex model learns noise or random fluctuations in historical data rather than generalizable patterns. This leads to excellent backtest performance but poor real-world results. Overfitted models often fail in live markets due to changing conditions, market randomness, or unseen data. It reduces robustness, increases risk of false signals, and can mislead traders into trusting unreliable strategies. Preventing overfitting requires proper validation, use of out-of-sample testing, regularization techniques, and avoiding excessive model complexity.