The best AI trading software provides data-backed insights to help you make profitable trading decisions. This machine-learning-powered software analyzes multiple data sources to provide you with data-driven and timely insights and alerts. With the heavy lifting out of the way, you can make time for other things that matter and still make confident, safe, and profitable trades. Let’s explore the features and advantages of some of the best AI trading software available today.
What Are AI Trading Software?
Simply put, AI trading software is designed to analyze stock and trading patterns in real-time. From its analysis of the market, the software can come up with stock recommendations as well as real-time data. The type of information generated by these types of software is highly valuable, as you can use them to optimize your entry and exit into stock positions to maximize profits.
Since trading primarily hinges on making timely decisions based on future price movements in the market, the ability to analyze and predict price movements is a valuable skill in trading. By analyzing the market and predicting price movements on your behalf, AI trading software offers an unprecedented advantage over other types of trading software.
At the core of AI trading software is machine learning, which is a subfield of artificial intelligence. Machine learning software attempt to imitate human thinking and behavior. We use the term “imitate” in the sense that they are designed with the capability to learn from improving through exposure to data sets. In other words, machine learning models are able to learn from their mistakes as and improve over time without human intervention.
Most AI trading software can monitor the price behavior of thousands of stocks simultaneously and around the clock. Given a set of pre-determined parameters, the software can monitor the market for specific markers of price movements. It will then notify you of these impending changes, allowing you to act accordingly.
In addition to monitoring stock price movements, some AI trading software can track your performance over time. In a back-testing process, the software analyzes historical data to give you an idea of how well your strategy worked for a given period. Some software also allows you to test different strategies within simulated trading platforms.
10 Best AI Trading Software for Optimized Trading
A selection of AI trading software is available, and each has its own set of features and market affiliation. However, artificial intelligence-powered trading software is a niche part of the software market, so it’s not often that we hear about them. With this in mind, it can be quite difficult to look for software with artificial intelligence capabilities. It’s even harder if you have no financial training or are just beginning your financial trading journey. Luckily, you no longer have to search in the dark for the best AI trading software, as we’ve come up with a roundup of the very best.
1. Trade Ideas
Trade Ideas is a comprehensive trading software with some advanced artificial intelligence capabilities. Founded in 2002, the company has been in operation for about twenty years, during which time it has received many improvements.
The software sifts through thousands of stocks simultaneously each day, analyzing technical and fundamentals. It also analyzes hundreds of social media and news websites for reports of company-based movements that can affect stock prices.
The software offers a wide selection of features, including providing signals for entry and exit to maximize your profits. It also features real-time trading simulation, price alerts, risk assessment, building and back-testing for various trading strategies, and automatic trading. It also features a virtual trading assistant that can help you analyze chart patterns as well as ideal entry and exit points in real-time.
One advantage to the software is its ability to filter bad stocks. It does this by analyzing the stock’s historical performance in contrast to current market conditions. The software is also very easy to use, making it ideal for both beginner traders and professional traders.
2. Blackbox Stocks
Blackbox Stocks is a comprehensive AI trading software with some very practical social features. The software is pre-programmed to monitor the activity of over 13,000 stocks and options simultaneously and around the clock. It’s notable for its user-friendly interface, which contains all the necessary information.
The software has various tools, including advanced technical charts, dedicated scanners for different markets (i.e. stocks or options), trade alerts, custom watchlists, and much more. The market scanner takes into account both pre-market and post-market conditions in its recommendations. This way, you always have a full picture of market activity.
Additionally, the software features its own stock news feed called Fly-on-the-Wall, which precludes the need to subscribe to an external news feed. It also features a Members Chatroom where you can meet and chat with other traders, and shadow the traders that you admire. It’s a good place to stumble upon profitable ideas and strategies.
Black Box Stocks is arguably one of the more affordable trading software in the market, with a monthly plan costing just $99.97. The annual plan costs just $959. which can save you up to $240.64 compared to the monthly plan. This covers data fees as well as Access to Fly-on-the-wall news feed.
3. Infinite Assets
Infinite ALPHA, formerly known as Infinite Assets, is another AI trading software based in the UK. The software specializes in monitoring and trading the forex and crypto markets, allowing the integration of both into traditional portfolios. It does all the hard work regarding technical analysis, leaving you with the simple task of executing trades.
The software works by monitoring the forex market for trade opportunities. Occasionally, it will send you buy and trade signals so you can execute trades on time. Aside from scanning currencies individually, it also monitors currency pairs, which are stocks that move together in the same direction. The latter is quite difficult to accomplish on your own, so the software does it for you.
In addition to the full selection of common indicators, the software adds more sophisticated indicators that traders have adopted recently. These include the Moving Average Convergence/Divergence (MACD), stochastic oscillator, and Swing Point indicator.
Besides technical analysis, the software also grants you access to an exclusive member’s area where you can watch professional traders trade in real-time. This is a great way to learn new trading methods and strategies without paying for anything extra.
Infinite Alpha has a unique pricing scheme, essentially rationing access to the service per number of hours. Case in point, 24 hours of Access will cost you USD 50; 96 hours of Access will cost you USD 7000, and 120 hours of Access will cost you USD 10,000.
4. Tech Trader
Tech Trader is a fully autonomous trading system that uses artificial intelligence to bring you up-to-date and data-backed trading insights. The software covers technical and bottom-up fundamental analysis across multiple asset types and risk profiles.
The software excels at trade idea generation and planning, the latter involving scanning for opportunities across a range of markets to determine ideal entry and exit points.
But what really sets Tech Trader apart from other software is its ability to execute orders completely unsupervised. It’s also more than capable of engaging in high-frequency trading (HFT). HFT involves executing large numbers of orders within a fraction of a second, and not all types of trading software are able to execute HFT.
The software relies on complex math models, correlations, statistics, and statistical analysis to offer valuable insights into the most profitable stocks. Even more impressive is the fact that the software can understand your preferences over time and will automatically apply them to decision-making.
5. MetaTrader 4
MetaTrader 4 is another AI trading software and one of the more popular options among forex traders. A Russian company called MetaQuotes released the original version of the software in 2005. Five years later, they would release a more advanced version called MetaTrader 5. But even after the release of the advanced version, the original software would remain more popular due to its user-friendly tools and interface.
As ide from trading forex, MetaTrader 4 is also useful for trading other types of financial markets. These include CFDs, futures, indices, commodities, and crypto. Another factor that makes this software so beloved relates to its easy-to-use interface, which is a nice contrast to its powerful data-processing capabilities.
The software is not fully automated, but it is brimming with technical and custom indicators useful for technical analysis. It supports all order types, from instantly executing asks and bids to request-based limit, market, and stop-loss orders.
The software has other features such as trading alerts, copy trading, automated trading, and news and analytics. It also allows you to create your own trading indicators using the platform’s own programming language.
Another critical feature of MetaTrader is the reliability of the software on which it sits. While other platforms may experience occasional glitches and breakdowns, this platform was designed to stay online even under the worst market conditions.
MetaTrader 4 is available for individual trading and brokerage-level trading. The software itself is free to download on any device. It also runs on most major operating systems, including Windows, Mac, iOS, and Android.
The company offers a free demo account allowing access to basic features as well as dummy assets. On the other hand, live trading requires either a premium or pro account with advanced features.
6. Trend Spider
Trend Spider is another trading software with some artificial intelligence capabilities. Having been established only in 2018, the company is a relative newcomer in the trading industry. But at the same time, it has proven to be one of the fastest-rising platforms. In fact, it has a current user base of 5,000.
As mentioned, the software runs on automated charting software. This charting software can keep up with trendlines, break-out points, Fibonacci retracements, and candlestick formations in real-time.
The software lets you create watchlists for markets you wish to track and analyzes the market for trading opportunities. Its technical inputs are automatically reflected within the charts for quick identification and action.
You can also narrow down the criteria for alerts to very specific parameters. For example, you can set the trigger to when the stock price bounces off a trendline. This helps to ensure that you only receive helpful alerts and prevents your inbox from getting flooded.
The software also provides access to data from a wide range of markets. The list of markets includes forex, OTC markets, futures, cryptos, ETFs to equity indices. Access to these data sets allows you to invest in a variety of asset types to keep your portfolio diversified.
There are three plans under Spider Trend. These include the Analyst Plan (USD 213 per year), the Pro Trader Plan (USD 297 per year), and the Elite Plan (USD 447 per year). Each plan comes with a specific combination of features and tools.
EquBot AI Platform is an artificial intelligence-backed software designed for corporate-level investments, particularly for exchange-traded funds (ETFs). The company combined the artificial intelligence created by IBM with their own proprietary model to create an ETF-focused trading software.
Functioning in much the same way as Morgan Stanley’s algorithm, the RTF algorithm reads through incredible quantities of more than a million data pieces daily. That is equivalent to the data compiling and research capacity of over 1,000 individual research analysts working non-stop.
The data have been trained to analyze all relevant sources of financial information. These sources commonly include earnings reports, SEC filings, financial news articles, and social media posts. Analyzing these data points, the software can generate recommendations for superior stock selection.
Another critical advantage to the software is that data is the only thing that drives it. It makes decisions based entirely on data and pre-set parameters. By delegating decision-making to the machine, you can eliminate the risk of human bias rooted in emotion or personal agendas.
In addition to following strictly machine-based and data-driven logic in its decision-making, the software’s machine learning capabilities also make it highly adaptable to new data input. In other words, the software can be expected to learn from its mistakes and make even better decisions over time.
EquBot’s artificial intelligence platform is a private-owned property. This means the only way to get even close to the software is by investing in either of the two ETF funds they run (AIEQ or AIIQ). ETFs are long-term fund types that mirror indices like the stock or bond market. They are largely considered low-risk and stable investments characterizes by well-diversified portfolios. Check out this list of the best Fintech ETFs you can invest in now to ensure capital growth.
Kavout is a comprehensive, artificial-intelligence-driven trading program that helps investors of all types to invest in the best stocks. The software is the result of years of hard work by a group of engineers with decades of experience in the combined fields of analytics and financial markets.
An AI-powered machine learning process called Kai is at the core of the trading platform. Kai can analyze millions of data points at any given time from a variety of sources. These sources include: SEC filings, stock market quotes, financial blogs, news, and even social media websites.
The software will then run the data through a variety of complicated financial and engineering models. These include classification, regression, and so forth. The software then compiles the results in a predictive ranking for stocks and other assets.
Aside from the ability to rank stocks using indicators, the software has other very useful features, some of which are also backed by artificial intelligence. One feature includes a paper trading portfolio, which allows you to test out an investment strategy without using real money.
It also features a market news service. This service compiles relevant financial news and a watchlist feature that keeps track of specific stocks and markets. There’s also a market analysis tool that filters out the best stocks for you to invest in and a calendar to keep track of stock performance week-on-week.
The software also features a stock screener that can filter its selections following the investment philosophies of famous stock investors like Benjamin Graham or Warren Buffet.
The company behind Kavout is marketing their services mostly to institutional clients and organizations, though they do offer special services for retail investors. Unfortunately, their prices are confidential and can only be acquired through direct inquiry.
Algoriz is another AI trading software that uses machine learning. The service specializes in helping you create and test your own automated trade strategies instead of working off of pre-built ones.
The software has a unique proposition: to create your own algorithms by typing them in plain English. For example, you can create an algorithm with a simple statement: “If AAPL is 3% above yesterday and SPY is below yesterday.” You can then test your algorithms using various data sources on the software’s simulated matching engine.
The software also features a stock scanner that looks for markers of radical price movements in stock charts. Among other things, it can send alerts whenever prices hit support or resistance levels, indicating an impending rise or fall in stock prices.
Algoriz offers four different plans. These include a free Lite plan, a Professional plan (USD 29 per month), a Premium plan (69 per month), and an Enterprise plan (price not disclosed). The plans come with an increasing number of algorithms and screeners in addition to basic features.
Looking for an AI trading software that supports crypto trading can be difficult given the lack of available information. Luckily, there’s CryptoHero, an automated trading app specializing in trading crypto assets.
CryptoHero bot has a handful of exciting features, which include: automated trading, back-testing, technical indicators, paper trades, and portfolio tracking.
Automated trading leaves the actual trading to a crypto bot, you don’t have to manually input your orders. All you have to do is set your trade parameters beforehand. The system will run a string of simulations and give you a list of the best stocks with the best possible outcomes.
The software also features back-testing, which takes a look at your past trading decisions and market conditions to evaluate your performance. It also features a demo portfolio where you can run scenarios with exchanges without using real money or crypto. It also offers a way to track your crypto trading performance individually or in aggregate across multiple exchanges via a single app.
Another critical advantage to the software is the level of security with which it operates. The software connects with crypto exchanges only after passing a strict authentication process for your security. It also lets you control what the trading bot has access to on your trading platform as part of a risk-mitigation process.
There are three plans available for CryptoHero. These include: a free plan, a premium plan (USD 11.66 per month on an annual contract or 13.99 on a monthly contract), and a professional plan (USD 24.99 per month on an annual contract or USD 29.99 per month for a monthly contract). The premium and professional plans contain different numbers of active bots and API connections.
AI Trading Software vs. Robo Advisors: What’s the Difference?
AI trading software and robo advisors are similarly aimed at helping you make wise decisions in investing your money in various financial markets. But while the two types of software have similar objectives, they have a few major differences in terms of underlying technologies and operating mechanisms.
One of the key differences between robo advisors and AI trading software relates to the profit-making strategy they focus on. Most robo advisors are designed to support assets that produce slow but stable returns such as ETFs and mutual funds. The majority of AI trading software, on the other hand, is designed to support assets that yield small but fast profits.
Another difference is that AI trading software runs on machine learning. Robo advisors, on the other hand, run on pre-programmed codes that execute pre-determined functions based on inputs. Unlike AI trading software, they are not able to analyze and monitor market data in real-time. Nor can they invest your money automatically based on real-time data.
Another difference has to do with the fact that robo advisors are limited to analyzing your personal financial history based on a pre-set investment methodology. They use this to create a personalized portfolio that meets your preferences. However, they cannot rebalance or adjust your investments automatically. AI trading software, on the other hand, is capable of adjusting its methodologies based on your personal preferences and trading style.
With this in mind, there are advantages to using either type of software. If you want to give it a try, here is a list of the best robo advisor platforms you need to manage your money.
Final Thoughts on the Best AI Trading Software for Optimal Trading
And there you have it, our compilation of the best AI trading software to help you make well-informed trading decisions for the best profits. Remember, you don’t need to have comprehensive financial training to get started with trading stocks. Ideally, though, you should have a basic understanding of trading terms, charts, and indicators. This will allow you to navigate any type of trading software.
While AI trading software may handle the bloodier parts of the work, that does not mean they will do all the work on your behalf. You still need to come up with your own trading strategy and familiarize yourself with chart patterns and indicators. You will also need to monitor your own performance. Given that you are risking your own (or someone else’s money), it only makes sense to get all the help you could possibly get to make the right decisions.
While AI trading software can be very expensive, they do offer a lot of advantages. With reliable software by your side, you should be able to spend more time executing trades and planning your strategy and less on monitoring the market. And with the multi-compatibility of most platforms, you should be able to execute trades whenever, wherever.
Of course, once the hard part is over and you have reaped your profits, you’re going to want to spend some of that profit on things that you want and need. If you go shopping online, you will want to make sure that your money stays safe. Here are some of the best payment apps for safe transactions.