To say we're in the age of automation would be an understatement. With entrepreneurs such as Elon Musk on the cusp of making fully self-driving cars a reality, the power of automated technology is more apparent than ever. Of course, innovators have long been finding ways to make machines do things for us. The term automation has been around since 1946. Coined by Ford engineer D.S. Harder, it was used to describe the advent of mechanical devices that could do human tasks and/or tasks deemed impossible for humans.
As technology has evolved and the digital age has dawned, a term that long ago slipped into the common vernacular is now everywhere. From the heating and lights in your home to aircraft taking people from one side of the world to the other, machines are now capable of doing what we can't and, in some cases, what we can but better. This proliferation of automation in recent years is due to advancements in artificial technology (AI). Today, AI machines can not only make decisions on scales not possible for the human brain but learn new tasks.
AI Advances Automation
We all know about AI's exploits in the chess world over the years, having seen programs such as Deep Blue. However, in today's world, AI machines can teach themselves to play chess like a Grand Master in a matter of hours. With the complexities of chess seemingly mastered, AI programmers are now turning their attention to tasks such as talking and walking. In short, AI is extremely powerful and that's driving innovations that make automation possible. In fact, it's the innovations that aren't grabbing the headlines that prove how much technology is evolving.
Indeed, when computers can tackle what could be classed as routine tasks, tasks that we didn't even think could be automated, that's when you know it's effective. A great example of this is automated trading. When Wall Street fat cats were the only ones privy to stocks, commodities and forex, no one ever thought computers would be able to make the kind of decisions AN expert could. Fast-forward to today and automated trading is all the rage. As the industry has gone "online," new ways of operating have emerged and that's made trading on this market accessible for everyone, namely by reducing the amount of time in front of a computer screen previously required.
Robots Have the Potential to Replace Humans
Powered by something known as a "forex trading robot," automated programs use complex algorithms to scan the daily markets and make decisions based on pre-programmed protocols. The advanced robots have the power to learn as they trade and continually refine their decisions based on past results and current information. The end result is a program that executes forex trades with minimal human input. For novices, automated forex trading is great because the decisions are based on empirical data and made in a calculated way. In other words, emotions and uncertainty are taken out of the equation. That's important for newbies who often lack the knowledge and discipline to trade effectively.
Beyond the benefits for the inexperienced, trading robots in all sectors, from forex to stocks, improve speed of entry. Timing in all types of trading is crucial. The quicker you can execute a buy or sell order, the better your chances of getting the best price. Naturally, even though automated trading robots are capable of making moves on their own, they can't be left to their own devices. System failures aren't uncommon and you still need to input and adjust your personal preferences during trading hours. Finally, even the best robots have trouble matching the results of an experienced trader.
The Automation Revolution is Just Starting
In the future, the gap in performance will certainly decrease. However, human intuition is hard to replicate. Even if it's hard to define, there's something to be said for gut feeling. Computers, advanced as they are, only act and react to empirical data and pre-programmed rules. This is true in trading and the wider world of automation.
Indeed, we only have to look at the unfortunate accident a Tesla driver had in March 2019. Following a similar incident in 2016, issues with the car's cameras reading road markings and unexpected moves by other (non-automated human) drivers resulted in a crash. In a world where machines and humans are operating in unison, the former can't always read the latter (and vice versa!).
Because humans can be unpredictable, machines don't always react quickly or appropriately. That's also true when it comes to things such as trading. As we move more towards full automation, this will become less of any issue. However, for now, the age of automation is still very much in an adolescent state.
