Forex AI
Machine Learning, Reinforcement Learning, Backtesting and Risk Management for Algorithmic Forex Trading
Luca MarinichRead it in Italian: Forex AI
How do you go from a trading idea to an algorithmic forex system that holds up against costs, tests and the market? Forex AI is a complete, ordered guide to designing, validating and maintaining a forex trading system built on machine learning and reinforcement learning. It ends with a system you can monitor, explain and defend. What you will learn: - Market structure: OTC liquidity, sessions, spread, slippage and the real cost of execution - Feature engineering: turning price, indicators, correlations and sentiment into model inputs - A layered AI stack: regime detection, direction forecasting, magnitude and timing, and a calibrated meta-learner - Adaptation: online learning, champion/challenger models and drift detection (ADWIN, Page-Hinkley, PSI) - Risk management: position sizing, fractional Kelly, volatility targeting, Monte Carlo simulation and equity curve control - Honest backtesting: walk-forward analysis, purged cross-validation, the Deflated Sharpe Ratio and permutation tests - Reinforcement learning for trading: reward design, curriculum learning and the move from simulation to production - Production: data pipelines, MLOps, monitoring and explainable AI with SHAP - Regulation and taxes in the United States, the United Kingdom and Germany Each of the 24 chapters (10 parts) includes pseudocode, numerical examples, key takeaways and review questions. Historical cases show what goes wrong in practice: the Swiss franc shock of January 2015, Long-Term Capital Management and Knight Capital. For developers, quants, experienced traders and students of quantitative finance who want to know how an AI trading system is built and whether it works. An honest note: this book offers no trading signals and promises no returns. Leveraged currency trading carries a high risk of losing your capital, and most retail accounts lose money. The book is about method. For educational purposes only; not investment advice.
