What is AI stock trading?
AI stock trading is the ability to use artificial intelligence to follow pre-set instructions that allow it to make decisions for you when trading. It will automatically buy or sell your position when the pre-set condition is met. The AI trading software is primarily autonomous, so it requires little human interaction. It gives users the flexibility to manage their time as the AI does most of the work.
The AI follows the algorithm’s rules to mimic human behaviour but at a fraction of the time. It uses historical data from the stock market and real-time data to make decisions that will successfully execute trades. Examples of AI in stocks are following pre-set instructing and trade signals like in platforms like FXGrowth that have highly advanced algorithmic training to ensure real-time signals are offered to their users.
The importance of backtesting
For any stock trading method to be successful, it is ideal for backtesting before committing to spending your money. In this case of the AI trading software or AI trading app, it’s good to test a hypothesis on the historical data and then check to see how often that hypothesis is true. The AI trading software you decide to use should already provide a backtesting service to ensure its users a higher chance of stock trading success.
Examples of the best AI trading software
It is essential to use an AI trading software that is best suited for you. In this review, we looked into a few highly rated AI trading systems for stock trading. Listed below are our top choices that we think you should consider before investing your funds.
The Tickeron software uses AI to generate trading ideas. The method is based on pattern recognition. They’ll use a technical analysis database consisting of patterns to search the stock market for stocks that match those patterns. These could be price movement patterns, for example. Once these patterns have been detected, a backtest is done to see how successful their track record is in the stock market.
As an AI trading bot, Tickeron is one of the only AI trading software that shares its track record of success with the public. Out of the 27 AI bots, it claims that there was at least a 30% annual gain in profit, which is an excellent success rate. However, since not many other trading software discloses their rates to the public, it’s difficult to compare, and sceptics are likely to want to prove or disprove this.
Trade Ideas is an excellent AI trading software for stock as well as other assets. It is an advanced scanning platform that uses AI and other advanced scanning tools to find the best opportunities to execute your trades. These built-in scanning tools will give you real-time trading updates, so you’ll always know when it’s the best time to buy or sell your positions.
Trade Ideas has been going strong since its creation in 2002, which shows its longevity in the financial industry. It has served over 50,000 traders with a system that scans through more than 6,000 stocks to give you important alerts that you decide whether or not to act on.
The AI trading software also has educational content, such as live seminars, to help simplify the platform. In addition, Trade Ideas has an AI trading bot called Holly, which provides easy to use trading advice and updated portfolio tracking to ensure what you’re doing benefits you and your funds. Holly is widely known as the most advanced stock trade robot in the market currently. You’ll have access to a technical and fundamental analysis by Holly as well as user-friendly tools and a simple to navigate interface.
Holly AI Bot
Holly is essentially split into 3 AI trading systems applied over 70 strategies. Developers created algorithms to apply 70 different strategies to the stocks in the US Stock exchanges. There are thousands of stocks in that exchange, which, multiplied by 70, comes to over millions of backtests every day to ensure successful execution of trades.
Holly 2.0 is the updated version of the Holly AI bot. It allows you to choose from more decisive and aggressive day trading scenarios to apply to the stocks you’re trading. In Trade Ideas, you get the option to operate three key trading styles with each AI trading bot, which are the conservative, moderate or aggressive trading styles.
Conservative, Moderate or Aggressive Trading
A conservative trading style is for investors looking at short term goals, less than three years. Or for retired investors who want a regular stream of income. It is designed not to have an exceptional amount of growth in the portfolio but instead stability. A moderate stock trader will take more risks than the conservative but still likes the idea of having a reliable stream of income. Finally, the aggressive stock trading style is open to a more high-risk approach, focusing on rapid growth in their portfolio through day trading.
Holly 2.0 is the most aggressive AI stock trading bot out of the three, and because of the high risk, you’ll have more chance of a high trading return per year.
The final version is the Holly NEO AI trading software. Holly NEO is Trade Idea’s latest day trading bot that trades real-time chart patterns. The Neo bot is excellent because it looks at the important day trading technical analysis strategies like long or short price pullbacks and breakouts.
The final AI trading software we’ll look at in this review is TrendSpider. As another AI trading bot, TrendSpider is quite popular among stock day traders, considering it has been a relatively new software since 2018. They’re able to search through and analyse market data trends to find the opportunities for you to buy or sell your positions. They’re known for their easy to use interface and attractive web design too.
The automated AI trading software uses its chart-watching abilities, backtesting and technical analysis to give customers the confidence to make the right decision and execute trades. TrendSpider provides real-time access to stocks and other markets like forex and cryptocurrency. If their online training and support weren’t enough, they also offer a free trial, so you can test the software for yourself to see if it fits your stock trading needs.
AI Trading Software Benefit
This review looked at some of the many key advantages of using AI trading software to stock trade and listed them below.
As humans, we sometimes can be clouded by our emotions when making important decisions. Emotional trading isn’t ideal in certain stock trading circumstances when your funds are on the line. Although having emotions does have its positives as it can create a space for the thought process, but on the other hand, it can be the reason stock traders make mistakes due to emotional distress or pressure. This, in addition to health concerns and mood swings, can affect a traders performance in the stock market and increase the chance of messing up. AI trading systems allow traders to not worry about emotion-based decisions when the AI runs on algorithms and logic, helping decision making smoother.
Less Time Consuming
Research is generally the most time-consuming and difficult part of stock trading when it comes to stock trading. An individual would have to go through a lot of data and factors like the company’s financial statements, revenue, net income and earnings per share. All this research would just be for one company, and they’d have to do it all again for the next. In addition to this research, you’d also have to do qualitative research for every company you’re thinking about stock trading.
The more time you’d spend doing market research and analysis means you’d spend less time on actual trading. The AI trading bot is perfect for alleviating a considerable bulk of the time doing this at a fraction of the time. An AI trading software can execute billions of tasks, including detecting opportunities to execute trades and perform knowledge graphs.
As the financial market is evolving every day, so is AI. The AI trading software is constantly being updated to make it more efficient and effective. The algorithms are also being perfected to improve the stock trading process as more people begin their trading experience and become familiar with the systems. Some platforms even include training resources to improve the user experience further. It can come in the form of 1-on-1 training and rapid-response customer service help desks. In addition, AIs continue to support users in the way algorithms are run, with or without humans intervening.
Ease of Trading
Because an AI system can scan through the stock market at a faster speed than humans, it makes trading a lot easier. They can perform automated routine tasks like buying and selling stocks that you don’t need to supervise for regular trades. It will, however, need regular maintenance, but you can still spend less time monitoring the market with the help of an AI trading system.
An AI acts as a trading expert when stock trading, essentially doing all the hard for you. It’s more cost-effective to use AI trading software than another person like a broker or an analyst as you don’t have to worry about paying their fees. Also, human error could occur. AI trading focuses on the data and bases its decisions on facts rather than emotion. The research fees are also reduced as the AI bot can do that itself too. You’re reducing paperwork and allowing the AI to take care of reports created in real-time.
AI Trading software disadvantages
In this TradersBest.com review, we found there are also several disadvantages of using an automated trading system that you should consider before choosing one. We highlighted a few below.
Some trading platforms may advertise that their AI trading software has the most competitive rates and a lot to offer. However, this isn’t always the case, and you could risk purchasing software that won’t generate the number of returns that was advertised. It’s a good idea to find software that allows backtesting and has demo accounts, so you can try what their automated trading is like and if it suits your stock trading requirements.
Although AI software is great because of its advanced technology, it is also a risk. If you’re not familiar with algorithmic trading or coding and something were to go wrong with the software, you’d most likely have to rely on someone else to fix it. It can cause delays in your trading session, and you could lose out on profits. AI systems may also challenge beginner traders who are unsure how to reset the parameters to suit their needs, again at risk of losses.
Not all AI systems have been given the go-ahead to work in multiple countries. Some may still have regulatory setbacks and are only available in your region or another. It could be an issue if you’ve researched an AI bot, but you can’t access it. Luckily, the stock market is constantly changing, and there are always new developments, so that specific AI software should make its way to you. But in the meantime, you can find an equivalent in your area.
Conclusion – choosing the right AI trading software affects your returns
Overall, we believe that choosing the right AI trading software will positively affect your stock trading experience. It is an excellent idea for traders who want to develop their trading techniques more efficiently. It’s essential to research what each software has to offer to know that you’ll be getting the most out of it in the long run.
In addition, automated trading software is constantly improving its systems, which is excellent for traders who want to stay on top of technological developments. AI trading allows users to make real-time decisions in the stock market and benefit from the ease of trading and cost-efficiency.
AI trading software FAQ
💷 Can I make money using an AI trading bot?
Trading in different financial markets, including the stock market, comes with risks. Our TradersBest.com review looked at why an AI trading software might be the best option to help you with your trading decisions. These automated trading bots work around the clock to analyse data and research the thousands of stocks in the stock market at a fraction of a second. They work to the parameters set by the algorithms allowing you to execute the stocks you’re trading successfully.
🌐 What’s the best AI trading software for stocks?
We looked at several automated trading systems in this review out of the many available online. An ideal AI trading software will have advanced scanning tools suited towards more than one market. It will also have backtesting features to ensure the algorithms are reliable and result in greater returns for the traders. It’s important to consider what you want to gain from the software to help your decision if you know what you’re looking for.
📈 Can I trade stocks with AI?
Artificial intelligence trading is rapidly taking over the financial markets. An AI trading software was designed to make the process of research and analysis more efficient. It allows traders to dedicate more time to other aspects rather than the most complicated data analysis. AI trading gives individuals the flexibility to commit to other things that aren’t trading related, and at the same time, have peace of mind that their trading performance is gradually improving.