5 Best AI Tools for stock trading

One of the most horrifying facts of trading in the stock market is the overwhelming amount of big data, which becomes next to impossible to evaluate and filter manually before making a particular trade. That’s where different computer-based trading systems, such as trading algos, come into play, becoming an indispensable part of a trader’s life. These algorithms reduce the chances of human errors and efficiently handle massive data, providing quick evaluations in seconds.

Nowadays, with the rise of AI trading software and AI investing app and its impact on job seekers, traders are increasingly relying on AI stock price predictions. According to a survey report by JP Morgan in 2023, over the next three years, 53% of traders anticipated that ‘Artificial Intelligence/Machine Learning’ technology would have the most significant influence on the future of trading. Other influential factors identified were ‘API Integration’ and ‘Blockchain/Distributed Ledger Technology,’ shaping the trading landscape.

As seen in the picture below:

*Image source – JP Morgan

As we dive deeper into AI-based trading, we realized there are a few AI investing bots, AI stock prediction, and AI stock picker are available in the market with the help of which stock market algorithms can be cracks 

Wyden AlgoTrader 

Institutional-grade algorithmic trading software solution, Wyden previously known as AlgoTrader, offers a comprehensive suite of AI stock prediction tools and features for quantitative research, using AI for stock trading strategy development, strategy back-testing, and automated trading across traditional securities and crypto assets. Its capabilities cater to the needs of a typical AI quantitative trading firm, providing all the necessary resources to conduct research and carry out trading operations.

AlgoTrader acted as a software development company founder in 2014 with 9 investors and 3 people in their management team. Later in October 2022, the company rebranded itself as Wyden. The company is currently raising funds at series B and in Feb 2022, they raised $4.9 million which is the latest funding round with Credit Suisse as their one of the highest investors. 

Operating on a Java-based platform, AlgoTrader empowers trading firms to swiftly create, simulate, deploy, and automate various AI quantitative trading strategies in any market. Crafted by industry experts, this software grants users exceptional command over high-speed, data-driven trading to consistently achieve superior outcomes. With AlgoTrader, any AI quantitative trading strategy can be fully transformed into an automated process.

Trade Ideas

Founded in 2003, Trade Ideas emerged from a group of innovative financial technology entrepreneurs who had already established themselves as pioneers in the Self Directed Investment sphere. In response to the growing demand from investors seeking greater control over their financial portfolios, Trade Ideas aimed to provide a solution that allowed individuals to manage their own funds instead of relying on external professionals for a fee.

Trade Ideas distinguishes itself by offering rules-based visual AI trading signals integrated within each chart, catering to the needs of both long-term investors and active traders. This unique feature ensures adaptability to the ever-changing market conditions, as the software dynamically adjusts levels and evolves the AI trading signals in accordance with market trends.

For the fifth consecutive year, Trade Ideas has achieved recognition by securing a place in the prestigious Inc. 5000 list, which highlights the fastest-growing privately held companies in the United States. 

TrendSpider

In 2016, the company was founded by the traders who were fed up with the inefficiencies of results that other platforms are producing. They came up with an idea of a chart analysis platform which can conduct a comprehensive technical analysis within seconds not only for traders but for investors as well. The software evolves as one of the best AI automated trading software.

In the auto forex trading market, TrendSpider utilizes its exclusive algorithm to analyze historical market data and identify trends. Once these trends are detected, the algorithm shares them with human traders who leverage this information to execute effective and profitable trades.

In terms of TrendSpider’s Trading Bots, they possess the capability to transform a user’s strategy into a fully automated bot that is aware of its position and can perform various tasks. Users have the opportunity to refine and optimize their strategy using the platform’s Strategy Tester before deploying it as a Trading Bot.

By employing Trading Bots, users can use automated trading strategies to initiate actions when specific conditions outlined in their strategy are met. It means that a Trading Bots for stocks could be programmed to share information on a private Discord server or execute trades in a brokerage or exchange account through an order routing system.

Trading Bots for stocks offer extensive customization and flexibility, ensuring they align precisely with a user’s unique strategy. They operate on any timeframe starting from 15 minutes, have no expiration date, and leverage the capabilities of a cloud-based system.

In addition to Trading Bots for stocks, TrendSpider’s comprehensive platform provides scanning and screening tools for enhanced trade setups, efficient smart charts that save time, dynamic price alerts that enhance trade timing, and a range of other features.

ScanZ

ScanZ was founded in 2001 as its legal name ScanZ Technologies Inc., which is also known as EquityFeed. The company is a financial technology company that designs and develops trade discovery platforms for retail traders. The company collaborates with brokers to serve the retail traders best with their AI trading software, as you can see in the given below image, they are coming soon with these broker integrations. 

It harnesses the power of advanced filtering and sorting functionalities to deliver the fastest and most advanced news updates available. With access to over 100 news sources, press release wires, financial blogs, and complete SEC filings, ScanZ ensures that users stay informed in real-time about market-moving events that helps traders in making decisions through AI stock price prediction. 

Kavout

As the name suggests, “Kai” is a machine learning process that analyzes millions of data points, fillings, and stock quotes by reading financial news, blogs, articles, and social media channels to give traders accurate information. 

Surprisingly, Kavout did not raise any funding rounds, neither from institutional investors nor from angel investors. The company is into AI trading software and was founded in 2015, in Seattle, United States. 

Kavout revolutionizes the world of AI investing app through its cutting-edge platform, harnessing the power of artificial intelligence, big data, trading bots for stocks and machine learning to empower users in their investment decision-making process. 

Embodying various investment philosophies, Kavout’s arsenal includes an impressive array of 38 stock screeners. These intelligent filters sift through the vast sea of investment opportunities, enabling users to uncover stocks that align with their specific AI stock trading strategies and objectives. Kavout equips users with over 100 technical indicators, delivering crucial insights into the performance and trends of stocks and markets.

Drawbacks that still needs to be addressed

It’s important to note that while AI-based trading systems can provide valuable insights and automate certain aspects of trading, they are not foolproof. Successful trading still requires careful analysis, risk management, and a deep understanding of market dynamics. It’s advisable to conduct thorough research and testing before relying solely on any AI stock trading system.

Since AIs are getting popular all over the world and due to their easy-to-use technology, financial institutions and traders are looking forward to apt for AI rather than human intervention. 

However, there are still various drawbacks of AIs that need to be addressed in future when it comes to the above-mentioned AI stock trading platforms as well. Some of these concerns are as follows-

• AI trading software can provide traders with customized results but they need to have a certain level of expertise to conduct a trade. It makes trading difficult for novice individuals who are looking forward to learning through practicing.

• Reliance on AI trading software and algorithms means that performance and results are contingent on the quality of the algorithms and the accuracy of data inputs. If inputs are wrong, there would be no option to rectify the data automatically, now, depending on AI trading bots for stocks or any other assets somehow requiring a certain level of human expertise.

• The accuracy and reliability of the insights generated by Kensho’s AI for trading solutions heavily depend on the quality and availability of the underlying data sources and available information can be manipulated which leads traders to potentially make wrong trades. 

• Despite advanced NLP capabilities, the contextual interpretation of unstructured data can still present challenges, leading to potential misinterpretations or incomplete insights. It includes the sentimental analysis going on in social media platforms for a particular stock that can be missed out in using AI for stock trading as they come under unstructured data.

• One has to gain technical expertise in the field of information technology and should have a constant upward learning curve due to the advanced nature of deep learning techniques to fully leverage the platform’s capabilities.

• Using AI for stock trading will only be beneficial in making predictions based on patterns and historical data. Unforeseen market events or black swan events may challenge the effectiveness of AI trading software algorithms in predicting or reacting to such events.

Conclusion

As the FinTech landscape continues to evolve, AI will undoubtedly play a crucial role in shaping the future of stock trading. The combination of human expertise and AI-driven insights can provide traders with a competitive edge and improve their trading performance. It is essential for traders to stay informed about the latest developments in AI trading software, leverage reliable data sources, and continually evaluate the effectiveness of these tools in their specific trading strategies.

Ultimately, by harnessing the power of AI trading software, traders can enhance their decision-making processes, gain deeper market insights, and potentially achieve better trading results in an ever-changing and competitive financial landscape.