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What is artificial intelligence stock trading software?
How does it actually work?
Is it really the future of trading as many professional traders are predicting?
Also, how do you actually use artificial intelligence in stock trading?
Lastly, can the artificial intelligence stock trading software really help you improve your trading results?
If yes, what is the best artificial intelligence stock trading software in the market right now?
What Is Artificial Intelligence Stock Trading Software?
So, what is artificial intelligence stock trading software?
First, let’s talk about what is artificial intelligence.
“Artificial intelligence (AI) is the simulation of human intelligence processes by machines, especially computer systems”
One notable example of artificial intelligence is speech recognition (e.g. Siri).
So, how is artificial intelligence being used in stock trading software?
Artificial intelligence stock trading software uses machine learning to study and analyze market conditions and trading patterns and then predict what will happen.
It’s safe to say that artificial intelligence is the future of trading because of the two unique advantages:
- No human can process such a huge amount of market data as quickly as AI.
- It can watch and scan the market continuously in real-time
You see, with thousands of stocks listed in the stock market, it’s impossible for you to manually scan the entire stock market to look for your favourite trade setups.
If you had been doing technical analysis manually in the past to day trade stocks, it might have worked for you.
But, as a trader, you know that speed and timing are key to your success.
Would you still get the chance to enter your trade at a favourable price when other traders are taking advantage of automated stock trading software to help them spot profitably trade setups faster than you?
With artificial intelligence stock trading software, you can have it scan the market for you 24/7 to find your trade setups as it happens in real-time.
If you are always testing new trading strategies, you would love what artificial intelligence stock trading software can do for you too.
When it comes to back-testing, you would save tons of time by having AI run the backtest for you in minutes.
Gone are the days where you have to pull out the charts, scroll it slowly, and do manual backtest on each and every one of your trading strategies.
Best Artificial Intelligence Stock Trading Software
#1. Trade Ideas
Trade Ideas is probably one of the best artificial intelligence stock trading software for retail traders in terms of functionality and performance.
So, how can you use Trade Ideas?
There are three powerful tools offered by Trade Ideas:
- Stock scanner
- Holly AI
Now, let’s take a look at each one.
Trade Ideas Stock scanner
There are other stock scanners such as Finviz, but they are rather limited when it comes to helping you find trade ideas for intra-day trading.
So, what really separates Trade Ideas from other stock scanners is that it has over 200 built-in filters and alerts.
Basically, for any chart pattern that can be visualised on a chart, you can use Trade Ideas to help you find it and alert you in real-time.
Its stock scanner is one of the most powerful scanning tools I’ve seen.
It’s specially designed to help day traders find their favorite trade setup in real-time, so they don’t miss any good trading opportunities.
First of all, there are three versions of Trade Ideas Holly Artificial Intelligence:
- Holly Grail: it runs algorithms that are mostly technical analysis-based. For example, Fibonacci pullback, Breakout, Engulfing, VWAP Bounce, etc)
- Holly Neo: it only runs two trading algorithms (breakout or pullback) for stocks with high trading volume and are also in the news.
- Holly 2.0.: it runs about eight algorithms which include some very interesting trading strategies (e.g. “Bear/Bull Trap”) that are different from your conventional chart pattern-based strategies.
So, how exactly does Holly AI find high probability trade ideas for you every day?
Every night after the market closes, what Holly artificial intelligence does is that it runs backtests on these algorithms for the past 3 months.
Then, it looks at the backtesting results such as equity curve, risk-reward ratio, and drawdown and subsequently optimizes the strategies.
There are over a million trade scenarios being run by Holly AI overnight.
Once it has done that, it will take into account the current market condition and look at everything from fundamental to social.
In the end, five to eight trading strategies with the highest win rate will be displayed in the AI Strategies Window before the market open.
What’s more, it also shows you exactly when to enter and when to exit.
Basically, it gives you a complete trading plan.
The best part about using AI is that it will probably make better trades than you because it manages trades without any emotions.
Now, how is the performance of Holly Artificial Intelligence so far?
Below is the performance for the Holly Grail, Holly Neo and Holly 2.0 from 2019 to date, running Moderate Risk Mode risking $100 per trade with slippage and commission ignored.
(1) Holly Grail Performance
|Total Net Profit||$23,820.59|
(2) Holly Neo Performance
|Total Net Profit||$30,332|
(3) Holly 2.0 Performance
|Total Net Profit||$34,484.33|
As you can see, all the three Holly AI produce positive net profits with impressive returns.
What is more impressive is that it has excellent risk-based returns which is measured by Sharpe ratio.
Sharpe ratio tells you how much excess return you get for the extra volatility you are taking.
The higher the Sharpe ratio, the better the returns have been relative to the risk it has taken on.
A very good Sharpe ratio is anything that is higher than 2.
The Sharpe ratio of S&P 500 is 2.64.
As you can see, both Holly Neo and Holly 2.0 have better Sharpe ratio than S&P 500.
So, how do you use Trade Ideas Artificial Intelligence?
You can either follow the trade suggestions made by Holly the A.I. and executes the trades yourself or you can have it Holly the A.I. to trade for you via Brokerage Plus.
Brokerage Plus is an auto-trading module within Trade Ideas enabling automatic, manual, and semi-automatic portfolio management and trading with your brokers such as Interactive Brokers.
Get Free Trade Ideas Every Week Now!
OddsMaker is a tool that allowed anyone, including traders with no programming experience, to backtest any trading concept to see if it had a statistical edge.
So, how does it actually work?
If you suddenly have a trade idea for the next trading day, you can use OddsMakers to test and optimize your strategy.
What is cool is that you can use a lot of its built-in filters and built-in alerts to “program” your strategy without coding.
For example, let’s say you want to test if the odds are in your favor when you want to short a stock that has fallen quite a bit today when it would break support the following day.
So, you can simply use the built-in filters like “previous day change” and built-in alerts like “support break” to create your strategy in a few clicks.
Once you are done, you run it using “OddsMaker”.
At the end of the back-testing, it will give you an equity curve to show you if the strategy has a good probability to work out or not.
What is more, you can use “OddsMaker” to optimize what parameters can change to further improve trading strategy results.
If you are a serious day trader, then it’s really worth it to check out Trade Ideas’ AI Scanner which is one of the best in the market.
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TrendSpider is an automatic technical analysis trading software built by traders for traders.
Its unique set of trading tools can help you find better trade setups faster.
Now, let’s take a look at each one of its powerful tools and how you can use it to help you trade better.
Its market scanner can automatically scan the market for the best trading opportunities based on your pre-defined technical conditions.
The best part is that you can mix-and-match any technical conditions using any indicators or combination of indicators together in one scan with no programming knowledge required. (it’s all visual)
How cool is that!
If you are like me and prefer to do multiple timeframe analysis, you are going to love this.
TrendSpider’s Market Scanner can search across any timeframe, from 1-minute to 1-month, and can even combine multiple timeframes together in a single scan.
This is one of the most unique features of TrendSpider.
Now, can you do multiple scans at the same time?
Yes, TrendSpider can do that for you.
Once you have created your favorite scanners, you can use them at the same time to find good trading opportunities.
TrendSpider can even alert you if a particular stock in one scan appears in another scan — a great trading opportunity.
If you don’t have any scanners in mind yet, it’s okay too.
There are 20 pre-built scans to help you get started quickly.
Lastly, you can turn your scanner into a dynamic watchlist that is automatically refreshed and kept up-to-date.
With Market Scanner, you’ll never miss out on your ideal trading setup again.
So, what is Smart Charts?
And how can it help with your trading?
First, let’s just pause and picture this for a short while.
What if you open a chart and all the trendlines and support & resistance levels have been drawn for you?
What about automatic Fibonacci retracement levels?
Or how does automatic breakout detection or automatic candlestick pattern recognition sound to you?
With TrendSpider’s built-in automated chart analysis algorithms, you can have all these automated for you.
So, no more squinting at charts trying to identify meaningful patterns or trying to re-drawing trendlines over and over.
Also, it allows you to spot hard-to-find patterns and trends that you might otherwise miss.
With TrendSpider Smart Charts, you can not only reduce mistakes and eliminate guesswork but also save a lot of time.
And this is not all.
You also get real-time market data and 20+ years of historical data. (No extra charge for data)
If you are a heavy user of technical indicators, there are hundreds of indicators and studies included in Smart Charts.
On top of that, you also get access to its powerful, proprietary visualizations such as heatmaps, Raindrop Charts, and anchored indicators.
Lastly, you can perform multiple time-frame analysis on a single chart.
This allows you to see trends that other traders will almost certainly miss without pulling up separate charts and manually comparing them.
The best part is that there is no software to download or install.
It’s 100% web-based.
If you are a serious technical trader, then you should definitely try out TrendSpider’s Automated Technical Analysis
Technology that not only helps you save tons of time but also helps make sure you never miss any of your trade setups.
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