Financial markets are complex, volatile and often difficult to predict, which has led to the potential success of artificial intelligence in this area. The hassles in the world of trading are eliminated with the help of artificial intelligence and advanced strategies that beginners can easily use.
What is artificial intelligence trading software?
AI software is a trading tool based on five functions:
- Big Data: AI trading software processes a large amount of data. For example, stock analysis must go back at least 20 years.
- Adaptability - AI trading software uses machine learning to adapt to the environment. The software learns from past trading data, examines a specific data set, and tests on unseen data.
- Responsive to the market - AI trading software reacts to changing conditions around it. Machine learning, or pattern learning, analyzes input data and creates rules to calculate scores and make decisions.
- Multiple simultaneous trading systems - artificial intelligence trading software simultaneously processes multiple trading systems interactively.
- AI software always looks forward - AI software analyzes past performance to predict the future, makes a forecast for the future and looks for past situations to find a practical goal for the future.
5 best solutions for trading using artificial intelligence
Trade-Ideas is a robo-advisor and stock scanner for your trading activities. It also helps with backtesting and finding opportunities. Trade-Ideas works with various algorithms to help users find profitable trades and gives them the knowledge to use strategies that have the highest chance of making a profit.
After the market closes, the Holly algorithm analyzes the latest market sessions and their impact on 60 trading days. The strategies are then divided into 35 new concepts that have different goals and help you stay one step ahead of the market.
Numerous factors are included in this algorithm, such as cheap, expensive instruments, technical, social, fundamental, volume, etc. indicators. So Holly is basically an exploratory algorithm.
In reality, it represents a practical way to move the algorithm forward. As you trade and analyze more, you will get better at it. More information about this algorithm can be found on the Trade Ideas website.
The software gives traders an advantage in paired backtesting and helps them scan for signals that should have been entered in the past. In addition, the program provides chat windows and full quote functionality to filter the necessary information.
Trade-Ideas is widely used due to its good algorithms and the results it provides; it has rich functionality and settings that help the user in his trading prospects. You can follow the updates on their blog on a special website.
Blackboxstocks, founded in 2014, offers stock screening technology that uses artificial intelligence to cut through market noise. Therefore, their algorithms are accompanied by real-time trading notifications.
They have come a long way since their inception. They now include options market scanning and users can even find dark pool activity with this program! Access to this software costs $99 per month.
Along with the stock scanner, subscribers also receive membership in a Twitter group and discord channel where they receive real-time stock and options alerts. Only large-cap stocks are traded. This way, participants can easily copy trades and make a profit.
This software is also widely used among traders. It simplifies the trading process and automates analysis by providing smart charts.
Smart graphs are built on the basis of artificial intelligence, and here are their features and functions:
- Identification of trends that bring significant profits and readings.
- There is also a manual setting mode, etc.
- Automatic detection of trend lines.
- Detect breakouts, display support and resistance.
- Automatic Fibonacci corrections.
- Automatic candle patterns.
- AI will guide you towards profitable trades and highlight you on trading charts in your watchlist.
Trend Spider is one of the most outstanding simple and easy to use artificial intelligence trading software. Trend Spider offers automated technical analysis that provides a more personalized approach to professional trading.
Kavout is data-driven software for investors and institutions that uses machine learning to identify anomalies and create signals. This software uses AI to manage wealth, find opportunities, and reduce manual labor.
These catalogs provide information with data sets such as Price Momentum, K-Score, G-Score, Profitability Trend, Quality Factor, etc. The history of this data is presented for millions of stocks, and examples of data are also provided.
EquBot is a robust artificial intelligence exchange-traded fund powered by IBM Watson. The fund was created at the Haas School of Business at the University of California, Berkeley; its mission is: “To provide everyone with access to the investment opportunities that artificial intelligence opens.”
They have multi-stage technology that allows you to regulate the investment process using quantitative and qualitative analysis and information. EquBot is software for long-term investing.
How do these applications work?
AI software provides traders with the ability to buy and sell to catalyze the investment process and improve operational efficiency.
Machine learning helps eliminate traders' problems and evaluate volumes of data, discover patterns, create results that guide traders to trading prices based on decision-making.
Financial data is complex, has structure, processes and has a significant impact on future events. This means that historical data is an excellent source for finding price movements based on various indicators.
However, even algorithms are sometimes unable to evaluate these patterns. Therefore, there is an urgent need for unbiased and accurate data for AI software.
Data organization and feature development
Artificial intelligence is trading software that is not very different from the patterns that human analysts deviate from. Once the data has been found, the next step is to manage and classify it into groups. There are two data sets: test and training.
Why is this necessary? Once the algorithm has tested its capabilities, it must be trained to regulate its performance so that appropriate action can be taken.
Creating an algorithm
The algorithm helps make forecasts of price movements and trends in sets that match the interests of the trader. There are several ways to construct such an algorithm. It simplifies tasks due to two factors - predictability and signals.
Signals help to find areas of rising and falling prices, and the second reinforces what is found in the first. After the algorithm has found its way through the data arrays, it creates an output signal; a trader can predict the most effective instruments and find the most promising ones.
Making money from trading is not easy, but it is not unpredictable either. Most AI trading programs follow a simple logic consistent with what we discussed above; in reality, everything is quite complex; it is necessary to carry out decision-based analysis and create a high-performance and efficient algorithm. The stock market is structured in different ways:
- It is a complex structure in which there are interdependencies.
- This requires technologically advanced programming skills.
- Maintenance and configuration of the algorithm.
The reality is that a good algorithm with a favorable product produces results almost 85% of the time. However, until it reaches this level of perfection, without such knowledge, the operator may lose money. Therefore, ready-made solutions provide more results faster.
You also don't lose money on creating a new algorithm and take advantage of more high-end technologies for a one-time investment.
AI has its pros and cons, but you can use it to make a profit in the trading industry and become a good everyday trader. However, creating flawless trading software takes time and a lot of resources.
Therefore, it is best to use already created software and start using trading techniques based on artificial intelligence. Trade-Ideas is the #1 excellent screener that is ideal for finding the best opportunities and making profitable trades.