Industrial Consultancy & Sponsored Research (IC&SR) , IIT Madras
A System And A Method For Predicting A Trend In The Foreign Exchange Market
Technology Category/Market
Category- Information & Communication Technology
Industry Classification:
Forex trading, Algorithmic trading
Applications:
Real-time trend detection in forex markets; Automated execution of trades based on pre-selected strategies—Grid or DCA; Back-testing of strategies; Brokerage systems and Educational simulation tools
Market report:
The Global algorithmic trading market is valued at USD 15.6 billion in 2025 and is projected to grow to USD 50 billion with a CAGR of 12.35%.
Problem Statement
- Accurate forex trend prediction is vital for global trade, financial stability, and retail trading, enabling informed decision-making in volatile currency markets.
- Conventional algorithmic trading systems use technical indicators that are often complex, limited in adaptability, and unsuitable for low-latency devices.
- Further, many tools lack integration of market sentiment, economic data, and struggle with latency, accuracy, and real-time decision-making under diverse conditions.
- There is a need for a system that integrates technical and economic indicators for strategy automation while functioning on low-latency networks with real-time execution and back-testing capabilities.
Technology
- The system comprises user devices, a trading platform, and a server that collaboratively enable trend prediction and trade execution using real-time forex data across various latency conditions, making it efficient and reliable.
- It leverages advanced indicators like Bollinger Bands, RSI, ADX, and Ichimoku Cloud to evaluate trend strength, direction, and volatility, allowing users to select the most suitable trading strategy based on market conditions.
- Supports grid strategy for ranging markets and DCA strategy for trending ones; users input timeframe and trade volume, and the system automatically calculates and executes trades based on predictive analytics.
- The platform collects real-time and historical data, including currency prices and trade volumes, and merges them with market sentiment and economic news for a comprehensive prediction model.
- Backtesting functionality allows users to evaluate strategies using historical data; DCA employs safety orders to mitigate losses, while stop-loss concepts prevent overexposure in adverse market movements.
Key Features/Value Proposition
- Fully automates trade execution using real-time forex data, removing human emotional biases and improving consistency and speed.
- Combines Bollinger Bands, ADX, RSI, and Ichimoku Cloud indicators with economic data and sentiment analytics—rarely done effectively in existing tools.
- Supports both ranging (grid strategy) and trending (DCA strategy) markets, unlike existing systems focused on one type of trend.
- Designed to operate on medium and low-latency networks and devices, making it highly accessible and scalable in developing markets.
- In-built historical data analysis enables users to refine strategies, reducing risk and improving future trade outcomes.
Questions about this Technology?
Contact for Licensing
Research Lab
Prof. Nandan Kumar Sinha
Department of Aerospace Engineering
Intellectual Property
- IITM IDF Ref 2850
- IN 202441063177 Patent Application
Technology Readiness Level
TRL 8
System complete and Qualified