Artificial Intelligence (AI) has increasingly become a significant influence in the financial markets as it grows at a rapid pace.
Many people may wonder how traders may take advantage of AI’s capabilities in stock trading.
The options are limitless. Traders and investors may employ AI for a variety of tasks, including price prediction, portfolio management, and more. For some years, many prominent financial firms, such as Goldman Sachs, have been adopting AI.
Some may feel that AI is only used by professionals or high-net-worth individuals in stock trading. However, this is not the case.
Currently, retail traders can use artificial intelligence-powered stock trading software to gain access to the technology.
As a result, in this piece, I’ve selected three low-cost, high-quality AI stock trading tools that produce exceptional trading results. You are free to select the one that best suits your trading style.
Affiliate links are used in this post from Victory Tale. If you subscribe to these services, we will receive a small commission.
Nonetheless, because we respect honesty and put your needs first, you can rest confident that all of the products in this page are provided accurately.
Things to Keep in Mind
Before you start using AI trading tools, there are a few things you should be aware of.
First and foremost, despite the fact that all of the tools on this list are AI-powered, they are fundamentally distinct.
Some software is great for day traders who profit from daily stock market changes, while others may be more beneficial if you invest over a longer period of time.
As a result, no AI trading tool works for everyone. Traders and investors must then choose one that best suits their trading style and risk tolerance.
Second, relying on artificial intelligence does not guarantee that your trades will always be lucrative. AI is capable of analysing massive volumes of data, but it is far from flawless. It does make blunders when it comes to sending out trade signals.
Furthermore, the stock market is highly volatile and unpredictable (i.e., black-swan-like market conditions or adverse events). As a result, some losses in your portfolio are unavoidable.
These facts, in my opinion, constitute the power of AI trading software.
- Humans cannot detect trends and changes as quickly, extensively, or correctly as AI can. Furthermore, all of its suggestions are based only on market data and proof.
- It removes human emotion from the decision-making process entirely. Your trades cannot be unreasonable due to fear or greed. As a result, massive damages from these two faults will be impossible.
Finally, you may or may not require any prior knowledge to begin trading stocks with these AIs. This varies depending on the tool. Before risking your money, make sure you read the instructions or watch the videos.
1. Exchange Concepts
Trade Ideas is without a doubt one of the top stock trading bots for retail investors. Since 2003, the site has been used to locate chances for day traders.
Apart from AI, the platform provides a number of features that can assist you in conducting your own stock analysis.
AI stands for Artificial Intelligence (named Holly)
Holly will employ dozens of algorithms to study and evaluate thousands of equities in the US market every evening (after the market shuts) in order to uncover trading opportunities (thus, millions of scenarios in total.)
Only the top possibilities that pass the quantitative criteria will be executed the next day, according to AI.
When AI executes the strategy, you’ll be able to see all of the data, such as the winning rates, earnings, status (long or short), execution duration, and so on.
For further information, take a look at the video below from Trade Ideas.
I enjoy its openness because I can view all the necessary facts about the transactions before, during, and after they are implemented, so I don’t have to worry about unexplained losses.
There are three versions of Holly that can assist you in trading as of April 2021:
Holly Grail – is the company’s flagship AI, which employs thousands of trading methods. Breakout, Bullish Pullback, Not a Double Bottom, Selling Strength, Engulfing, and a slew of others are among them.
This AI is designed for traders who employ technical analysis to ensure that stocks that are creating tradable chart patterns are not overlooked.
Holly NEO – This AI is unique in that it only employs two strategies. It is ideal for event-driven traders because it concentrates on equities with abnormally high volume that are in the news.
Holly 2.0 – Trade Ideas’ most recent AI, which employs new techniques based on data gathered through machine learning over the years.
It will, for example, assist traders in profiting from a “falling knife” by allowing them to buy equities before they bounce.
This AI, in my opinion, is beneficial to unorthodox traders or risk-takers. Holly 2.0 may be your best partner if you wish to trade stocks based on something else than standard chart patterns.
Other Important Features
Trade Ideas includes extra elements that make it a good stock trading platform, in addition to its sophisticated AI trading engine. The following are some of them:
Brokerage Plus – You can develop your own trading strategy and design a market scanner to locate stock trading chances.
You can also connect your Interactive Brokers account to automate your plan implementation. As a result, you can trade stocks effectively without having to sit in front of a computer all day.
OddsMaker Window — Essentially, this functionality is a backtesting tool. It aids you in experimentally evaluating the technique by allowing you to test it over time.
What sets Trade Ideas apart from other tools is that it can give data-driven recommendations to help the strategy create higher profits. You don’t have to make educated guesses about how to improve it any longer.
Simulated Trading – Trade Ideas provides a simulated platform for traders to test new tactics. As a result, both novice and experienced traders can learn from and fix their mistakes without risking any money.
News & Alert – feature broadcasts, displays, and gives you updates on current stock market occurrences. You can customise the criteria to guarantee that all of the news is relevant to your stock trades.
Windows for Charts – This capability performs admirably as chart software. Without leaving the platform, you may track and study stock charts.
Exercising
The performance of Trade Ideas’ three AIs are listed below. The time period is from January 1, 2019 through April 15, 2021. The initial investment is $50,000.
In all computations, slippages and commissions are ignored. As a result, the actual performance is extremely likely to be worse than what is shown below.
Net Profit for Holly Grail: $23,820
Total Returns: 47.64 percent throughout the entire period
S&P 500 Index Return on investment for the total time period: 66.74 percent
Profit Factor: 1.18 (Gross Profits / Gross Losses).
2.10 Sharpe Ratio
Analysis: On the surface, Holly Grail’s performance for this time frame appears to be underwhelming, as it is behind the S&P 500 by about 20%.
Nonetheless, a closer examination of the data reveals that Holly Grail has an incredible Sharpe ratio. As a result, it demonstrates that an AI investor can make a good profit without taking on too much risk.
This was supported by the performance chart, which showed that the AI lost less than 5% in March 2020, while the S&P 500 dropped about 30%.
Holly 2.0
Holly 2.0 has a net profit of $30,332 dollars.
Total Returns: 60.664 percent throughout the full period
S&P 500 Index Return on investment for the total time period: 66.74 percent
Profit Factor: 1.25 (Gross Profits / Gross Losses).
2.91 Sharpe Ratio
In this timeframe, Holly 2.0 performs better than Holly Grail. In terms of net profit, profit factor, and Sharpe ratio, it performs significantly better. However, it was still 6.1 percent behind the S&P 500.
From January 2019 through May 2020, Holly 2.0 outpaced the S&P 500. However, its ideas haven’t worked out well in the last year, with negative returns despite the large-cap index rallying more than 40%.
Holly Neo
Holly Neo’s net profit is $34,484 dollars.
Total Returns: 68.968 percent throughout the full period
S&P 500 Index Return on investment for the total time period: 66.74 percent
Profit Factor: 1.25 (Gross Profits / Gross Losses).
3.02 Sharpe Ratio
Analysis: Holly Neo is the AI who employs the fewest strategies. However, both of its techniques appear to be effective throughout this timeframe, since it outperforms other AIs.
The only Trade Ideas AI that outperforms the S&P 500 is this one. Even after accounting for slippages and commissions, it still lagged the S&P 500 by a little margin.
By the way, I admire its low volatility because it allowed the AI to keep the wealth safe during the financial crisis. While the general market fell in March 2020, the portfolio’s losses were limited.
Important Note: This research only looks at how the AIs have performed in comparison to the S&P 500 during the last 2.5 years.
However, the results could be drastically different over a much longer period of time (e.g., ten years), as past success is not always an indicative of future performance.
Furthermore, all of the following results are from the broader bull market. Although AIs fared well during the brief down market of March 2020, we never know how they will do during the longer-term secular bear market.
Costing
There are two pricing choices for Trade Ideas. Standard plan users, on the other hand, are unable to access all of the Holly AIs. As a result, you’ll need to upgrade to the Premium plan.
The premium subscription costs $2268 per year (or $189 per month), which is significantly higher than the majority of stock trading platforms.
You don’t need to subscribe to any other charting or stock research tools because Trade Ideas offers all of the critical features for successful trading. As a result, it will assist you in saving money that you would have spent on alternative software.
Is it worthwhile to subscribe to Trade Ideas?
Many traders may worry if Trade Ideas is worth subscribing to because the AI systems’ performances did not outperform the benchmark.
The answer, in my opinion, is YES!
I like how AIs have a good risk-reward ratio and have done a good job of surviving the short-lived downturn market in March 2020.
As a result, traders can use margins to boost their total returns without having to worry too much about risk.
Trade Ideas includes several amazing tools, like backtesting, technique tester, charts, news streaming, and many more, that can help you improve your trading decisions.
If you’re still on the fence, I recommend signing up for their Test Drive, which begins on May 10th, 2021. You can experience Trade Ideas for two weeks for only $8.99 after signing up!
Advantages and disadvantages
Advantages
- Day traders, trend followers, and virtually anyone short-term or day trader who uses technical analysis will benefit from the best AI Stock Trading Software and stock trading platform available.
- Top-tier artificial intelligence trading bots that assess millions of trading scenarios
- The risk-reward ratio of AI-assisted trades appears to be excellent.
- When a crisis occurs, or when the stock market is extremely volatile, AIs perform admirably.
- Because all trade information are displayed on the site, it is extremely transparent.
- Built-in graphs, live news feeds, and real-time quotes: As a result, Trade Ideas serves as an all-in-one technical stock analysis tool. You will not be charged extra for additional tools like Benzinga Pro or Tradingview.
- For newbie traders who want to learn how to invest and use AI, there are plenty of free training and educational tools available.
- To test strategy, acquire confidence, and test all features, a simulated account is supplied.
- After connecting to brokerage accounts, automated trading is available.
Drawbacks
- Two out of three AIs trailed the S&P 500.
- There are no free trials available.
- To use AI effectively, there is a learning curve.
- User interface from the past
2. Tickeron
Tickeron is another another stock trading instrument that utilises artificial intelligence. Although some of Tickeron’s features are comparable to those of Trade Ideas, it takes a different approach that results in a completely distinct user experience.
Characteristics
Essentially, all you have to do is purchase and sell based on Tickeron’s AI suggestions. As a result, Tickeron is far more user-friendly than Trade Ideas.
Tickeron offers users a variety of AI stock trading bots, including the following:
Artificial Intelligence Robots
Tickeron’s primary product is Ai Robots. It will evaluate stocks in real time and execute trades based on the strategies set to it.
There are currently 34 AI robots in total. Trend Following, Gap Trading, Swing Trading, Day Trader $50, and more strategies are used by each AI Robot.
All you have to do now is choose the one that best suits your trading style and sign up for it.
Apart from a description of the approach, Tickeron has supplied thorough information on each robot’s performance, such as the annualised return, Sharpe ratio, individual trade execution, maximum drawdown, and many other metrics.
As a result, I believe Tickeron is quite transparent in this area, as you can examine all of the deals to determine if they are lucrative as Tickeron claims.
You will be able to visit each AI Robot’s trading room and observe its real-time trades once you have subscribed. Then you can buy and sell based on its recommendations.
You can tailor the list of stocks covered by each AI Robot, which eliminates any suggestions for equities you don’t wish to trade.
AI Patterns in Real Time
AI Real-Time Patterns and AI Robots work in completely different ways. Artificial intelligence (AI) will scan the market and find trading patterns automatically.
Tickeron, for example, can assist you in identifying stocks that are creating a head-and-shoulder pattern and can send you an alert when this occurs. As a result, you can purchase or sell short such stocks as soon as they break out of the base, ensuring that you never lose out on substantial gains again.
This function appeals to me because it not only delivers me trading signals but also gives me detailed statistical information, such as confidence intervals, target prices, percentage of correct forecasts, and so on.
AI can currently detect dozens of trading patterns, both bullish and negative. As a result, the instruments can assist you in trading freely on both sides.
Tickeron can uncover real-time patterns for ETF, Forex, and crypto asset trading in addition to stocks.
Search Engine for Patterns in AI
This function is similar to AI Real-Time Patterns, except instead of scanning the market in real time, it will scan it at the end of the day.
Prediction Engine for AI Trends
The AIs will give you their take on the trends of each stock, whether they are bullish, bearish, or moving sideways. Day traders and swing traders would benefit from this.
This engine, like the Pattern Search Engine, will assess the stock at the conclusion of the day.
You should view the video to get a better understanding of how it works.
Other Important Features
AI Portfolio Wizard – AI will help you build an optimum portfolio based on your risk profile automatically.
Scanner Search – You may use the Scanner Search feature to look for individual stocks based on a variety of fundamental and technical indicators. Tickeron will give ratings on things like outlook, price growth, and valuation, among other things.
I enjoy how the scanner presents all of the data points because it is simple to comprehend.
Exercising
For each AI robot, Tickeron provides information on 30-day annualised returns. AI Robots’ performance, based on my observations, varies greatly. Some have a return of more than 100%, while others have a loss of up to 16 percent.
The statistics also suggest that most AI robots have a 60 percent to 80 percent victory percentage and a profit factor of 2-3, which is astounding or even too good to be true.
However, I don’t believe we can adequately compare them to the S&P 500 because the returns offered are merely a gauge of annual returns based on the last 30-day period and Tickeron does not provide any more information on a longer timescale.
AI Robots, based on my observations of past deals, make an average profit of 2.5 percent to 4 percent every trade. (Some have made massive gains of 40 percent or more, but these are extremely rare.)
Because the percentage profits are minimal, and the AI makes frequent transactions, slippages and costs will cut into your nominal returns. As a result, the actual returns would be significantly smaller than they appear.
I also discovered that each AI robot’s Sharpe Ratio is less than 1.0, indicating a risk-reward ratio that is not optimal. This could mean that each approach used by AI stock trading bots carries a high level of risk and volatility.
Overall, I think the AI’s preliminary findings are good, but not as good as they appear.
Costing
Tickeron’s pricing is extremely convoluted. A lot of merchants are perplexed. I’ll do my best to explain it in this area.
Tickeron’s pricing model is essentially pay-as-you-go. You don’t have to pay for anything you’re not going to use.
You must subscribe to the Intermediate plan if you wish to use AI. You can then choose to buy each of the features listed above separately. This will cost each $20-$40 per month.
If you want both the Pattern Search Engine and the Trend Prediction Engine, for example, you’ll have to pay $30+$30 = $60 every month.
However, AI Robots are not included in the aforementioned option.
The following is how AI Robots are priced in comparison to the rest:
- The monthly cost of one robot package is $90.
- 2 robot bundles are $180 per month, and all robot bundles are $270.
You will earn monthly credits to subscribe to other features if you purchase the robot bundle (which allows you to watch the live transactions of one AI Robot). As a result, you won’t have to spend any further funds on them.
For example, if you buy one robot package, you’ll get $60 in monthly credits. You can then use them to sign up for the Pattern Search Engine and the Trend Prediction Engine without having to pay anything else.
If you want all of the robot bundles, you’ll have to pay $250 a month for the Expert plan, which gives you access to everything on the platform, including all AI robots.
This plan is less expensive and offers more functionality than the Intermediate plan, which includes all robot bundles. As a result, if you need access to more than two robots, consider upgrading to the Expert plan.
To explore all of the features, you can start a 14-day free trial (except AI Robots.)
Advantages and disadvantages
Advantages
- Send trading recommendations to users using powerful deep learning.
- It’s simple to use (without the learning curve)
- The user interface is beautiful and simple.
- AI Robots that are fairly transparent produce a respectable portfolio return with high winning rates and profit factors.
- Day trading and swing trading benefit greatly from AI Real-Time Patterns.
- Exceptional Stock Market Scanner
- Trade stocks, ETFs, FX, and crypto assets with AI assistance. 14-day free trial for all features except AI Robots
Disadvantages
- The Sharpe ratios of AI Robot trades are not optimal.
- The pricing structure is extremely convoluted.
- Actual returns may be far lower than those shown.
- Quite pricey
- There is a need for human interaction; automatic trading is not an option.
- A credit card is required for the free trial.
- TrendSpider is number three.
- TrendSpider is not a specialised artificial intelligence (AI) stock trading programme like Trade Ideas or Tickeron that makes direct stock trading suggestions.
3. TrendSpider
TrendSpider, on the other hand, is a fantastic charting tool with powerful machine learning capabilities that help to streamline and simplify the analytical process.
To put it another way, you will continue to evaluate and make your own trading decisions, but AI will act as a virtual assistant who will make the process more faster and easier.
Technical Analysis that is Automated
TrendSpider’s core product, Automated Technical Analysis, is what sets them apart from the competition.
This function will assist you with the following tasks:
- Automatic Trendline Detection/Fibonacci Retracement – AI will create trendlines and compute the Fibonacci retracement for you. Users are no longer required to repaint them repeatedly.
- Support and Resistance Detection – Within seconds, AI will determine support and resistance levels.
- Breakout Detection — TrendSpider will scan the markets in real-time and compile a list of all equities that are breaking out.
- Candlestick Pattern Recognition – Artificial intelligence will automatically detect candlestick patterns and find trading opportunities.
This feature is extremely useful to me because it assists in the verification of trade signals, eliminates human errors, and reduces repeated work.
As a result, you’ll have greater confidence and be able to make a trading decision faster, which is crucial in many trading situations.
Other Important Features
Apart from its AI, TrendSpider includes a number of other tools that help in stock trading:
Chart Tools — A ready-to-use chart tool with hundreds of indicators and visualisations that allows traders to do a full analysis in minutes.
Stock Scanner – In any timeframe, you can independently search for stocks that match your trading guidelines. This is ideal for identifying new trade opportunities, performing backtesting, and conducting special research.
Asset Insights — This tool will provide traders with non-technical information such as news, fundamental data, analyst actions, and more. This is very useful for techno-fundamental traders who need to figure out how stock prices and events are related.
Backtesting/Strategy Tester — Similar to Trade Ideas, the TrendSpider tool allows you to create a comprehensive stock trading strategy and test it with historical data.
Costing
The following are the three pricing tiers for TrendSpider (all prices are for annual plans):
- $33 per month for premium
- Elite membership is $65 per month.
- 97 dollars per month for a master’s degree
All plans include automated technical analysis as well as all other critical features. This plan, I believe, will satisfy the majority of solitary traders.
The Elite plan, on the other hand, will provide you with a backtesting functionality as well as more resources (such as workspaces and notifications).
Subscribing to the Master plan as an individual trader is completely unnecessary, as all benefits are identical to those of the Elite plan. You’ll only get more workspaces and notifications.
TrendSpider is available for a free 7-day trial.
Advantages and disadvantages
Advantages
- For sophisticated traders who wish to make their own trading decisions, this technical analysis software is excellent.
- Traders and investors with a longer horizon will find a number of useful tools.
- Visualizations and user interfaces that are attractive and easy to use
- Charts that are fully customisable and have a strong set of indicators
- Artificial intelligence (AI) can help you save time, avoid mistakes, and make better trading decisions.
- Because the software is web-based, there is no need to instal anything on your computer.
- Market scanners that go deep into the market to find the best stocks to trade
- Asset insights tools that track non-technical data are built-in.
- 7-day free trial of the entire backtesting system (credit card required)
Disadvantage
- At first, it was a little tough to use.
- No, the AI in the Automated Trading System does not make buy or sell recommendations.