5 Best AI Stock Trading Software & Bots Tested for 2022

What Is AI Stock Trading, How Can You Automate Stock Trading & What Are The Best AI Stock Systems & Bots For Analysis? We Put The Best On Test.

As artificial intelligence and machine learning permeate our everyday lives, naturally, the spotlight falls on AI for stock trading. This year we see the emergence of high-quality companies which provide an edge in the market by using artificial intelligence-powered trading signals. The term AI is often over-used; I will clarify the realities of AI and Bots in trading and test 5 of the best AI Trading Bot software.

AI Stock Trading Software Reviewed & Tested
AI Stock Trading Software Reviewed & Tested

AI Trading Software Review Summary

The use of rules-based AI and day trading Bots in stock analysis software is becoming pervasive.  However, machine learning and deep learning software are still in their infancy. Trade Ideas is an advanced, high-performing AI trading software with three automated AI trading Bots. Tickeron provides 34 AI stock trading strategies and countless hedge fund style AI model portfolios, all with audited track records.

TrendSpider uses AI to provide automated technical analysis and backtesting, which significantly improves human chart analysis.  MetaStock has an excellent backtesting & forecasting engine and a large rules-based AI system marketplace.

AI Stock Trading Software Comparison Table

AI Stock Trading Trade Ideas Tickeron
TrendSpider MetaStock VectorVest
AI Software Rating ★★★★★ ★★★★★ ★★★★✩ ★★★★✩ ★★★✩✩
Individual Investors
Trading Signals
Alerts
Pattern Recognition
Structured Strategies
Backtesting
Point & Click Back-testing
Automated Trading Bots
Cloud-Based AI

 

AI Trading Software vs. Stock Trading Bots

Stock Trading Bot refers to an autonomous algorithm that finds trading opportunities and executes the buy and sell orders automatically. The only pure stock trading bot available to retail investors in the USA today is Trade Ideas which consists of three Day Trading Bots that can run autonomously and execute trades on your behalf.

AI stock trading software generates rules-based trade signals or entire portfolios based on backtested price patterns, price volatility, diversification, and risk. Tickeron provides a wealth of AI-generated stock, ETF, and Forex strategies that you can execute.

Best AI Trading Software

  1. Best Automated Stock Trading Bot: Trade Ideas
  2. Best AI Trading Software & Systems:  Tickeron
  3. Best AI Stock Charts & Pattern Recognition: TrendSpider
  4. Powerful AI Backtesting & Strategy Development: MetaStock
  5. AI Algorithms for Market Timing: VectorVest

1. Trade Ideas: AI Trading Bots & Proven Track Record

Founded in 2003, Trade Ideas is the leading platform for finding day trading opportunities. Trade Ideas incorporates three cutting-edge AI algorithms that backtest every stock in the USA & Canada for high probability trading opportunities.

The AI algorithms developed by Trade Ideas are the main reason you would want to sign up. I had a lengthy zoom session with Sean Mclaughlin, Senior Strategist over at Trade Ideas, to delve into how the AI works, and I was very impressed. This company is laser-focused on providing traders with the very best data-supported trading opportunities. There are currently three AI systems in operation applying over 70 strategies differently.

Holly AI Stock Trading Bot

The Holly AI Stock Bot is the original incarnation of the algorithms. Holly applies 70 different strategies to all the US stock exchanges; 70 strategies multiplied by 8,000+ stocks means millions of backtests every day.  Only the strategies with the highest backtested win rate over 60% and an estimated risk-reward ratio of 2:1 will be suggested as potential trade the following day.

Trade Ideas - Holly Grail's Trade History
Trade Ideas – Holly Grail’s AI Trade History / Strategy & Exits.

Holly 2.0 AI

Holly 2.0 is a newer version of the Holly AI Bot, presenting more aggressive day trading scenarios. Trade Ideas operates three key trading styles with each AI Stock Bot, Conservative, Moderate & Aggressive.  According to our research, Holly 2.0 is the most aggressive stock trading Bot and provides the best trading returns of 33% per year.

Holly Neo AI

Holly NEO is Trade Ideas’ latest AI day trading Bot, seeking to trade real-time chart patterns. The Holly Neo Bot utilizes a mix of important day trading technical analysis strategies, such as trading stock price pullbacks and breakouts, either long or short.

  • Pullback Long – Seeks to identify trades where the stock price is down and is seeking to start moving up on higher volume.
  • Breakout Long – Where stock price breaks out up through a key resistance or to new highs.
  • Pullback Short – identifying a short pullback opportunity in price.
  • Breakdown Short – a shorting opportunity where upward momentum breaks down.
Get 15% Off Trade Ideas Try the Live Trade Ideas Trading Room Free

Trade Ideas Buy & Sell Signals

A significant benefit of Trade Ideas is that it visually shows you every signal buy and sell signal on a chart. In the chart below, I have highlighted a trade recommended by Holly AI (Holly Grail). This trade for Cleveland Biolabs (Ticker: CBLI) made a 25% profit within a 4 hour period. Not how the buy and sell signals are depicted on the chart.

Trade Ideas - Trades & Buy & Sell Signals
Trade Ideas – AI Trades & Buy & Sell Signals

Automated Stock Trading

Trade Ideas is one of the few services that offer fully automated stock trading. Trade Ideas allows you to connect to eTrade or Interactive Brokers for automated trade execution. As trade signals generated from Holly AI have a duration of a few minutes to a few hours, automating the buying and selling of stocks could be a wise choice and save you time.

Trade Ideas AI Stock Trading Bots Tested

After testing the Trade Ideas platform and assessing the AI stock trading and the day trading Bot performance, I can say this is the most compelling application of stock market AI for retail investors available today. This AI stock picker produces 3 to 10 trades per day, each with a duration of 2 minutes to 3 hours.

The test results are as follows:

  • Trade Ideas has large institutional clients and is a legitimate business.
  • Trade Ideas recommends, on average, about 3 to 10 trades per day.
  • Each trade’s duration is from a few minutes to a few hours.
  • Upon downloading and analyzing 65 days of trades, I can confirm the trade ideas’ performance numbers.
  • You need to be an active day trader to take advantage of Trade Ideas.
  • Trade Ideas returns approximately 20% per year.
  • Trade Ideas has, in the last two years, beaten the S&P500.
  • You need to be able to short and go long to take advantage of the trading strategies.
  • Depending upon your leverage, trading style, and which trades you take, you could make more than 20% or even make a loss.
  • TI is Day Trading Software; you will need to hold a minimum balance of $25K in your brokerage account to actively pattern day trade in the USA.

Get A Free Stock Trade Idea Every Month From Holly AI

Trade Ideas AI Performance

The claimed Trade Ideas performance is available on their website, and it is quite impressive. But to judge the performance of any system, we have to compare it to the underlying benchmark’s performance. In this case, I compare $50,000 invested in the S&P 500 versus day trading with Trade Ideas.

AI Performance Starting Capital Jan 2019 Ending Capital Oct 2020 Return % Per Year
Holly Grail (AI)  $50,000.00  $71,186.00 42% 23%
Holly 2.0  $50,000.00  $80,510.00 61% 33%
Holly Neo  $50,000.00  $71,186.00 42% 23%
S&P 500  $50,000.00  $66,000.00 32% 17%

 

As you can see, Holly has out-performed the S&P 500 since 2019.  Interestingly Holly did not suffer the huge losses incurred in the S&P 500 during the Corona Crash from March to April 2020.

Benefits of Trade Ideas AI Stock Trading

  • Offers the Real Possibility of Beating the Market
  • Exceptional Stock Scanning
  • More Trading Ideas Than You Can Trade
  • Curated Channels To Inspire You
  • Live Trading Room Included (Get Free Access to the Trading Room Now)
  • Excellent Point & Click Backtesting
  • 3 AI Algorithms Working For You
  • Unique in the Industry
Get 15% Off Trade Ideas Read the Full In-Depth Trade Ideas Review

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2. Tickeron: AI Trading Software & Audited Success

Tickeron is a wholly-owned subsidiary of SAS Global, a leader in data analytics whose services are used by the majority of fortune 500 companies. Tickeron uses AI rules to generate trading ideas based on pattern recognition. Firstly they use a database of technical analysis patterns to search the stock market for stocks that match those price patterns using their pattern search engine.  Of course, each detected pattern has a backtested track record of success, and it is this pattern’s success that is factored into the prediction using their Trend Prediction Engine.

Tikeron AI Bot Performance

Tickeron is the only AI software on this list (apart from Trade Ideas) that shares its track record of success.  Of the 34 AI Trading Bots I looked at, only 2 claimed less than a 30% annualized gain; the other AI Bots claimed from a 40% to 169% annualized gain, as you can see in the image below.  Tickeron claims impressive returns and audits all returns trade by trade.

Tickeron AI Trading Bots Results
Tickeron AI Trading Bots Results

The Day Trader Stock >$20 Bot claims a Win Rate of 61.64%, which is very high, especially when put into the context of this report from Fast Company.

Stock Market AI Systems Need An Audited Track Record

Tickeron shines a light on their AI algorithm’s performance by providing a fully audited track record of every bot under management. Before purchasing a strategy, you can see the entire performance summary of the strategy, the trade amounts, % profitable trades, Sharpe ratio, and trade duration.

Audited AI Stock Picking Performance by Tickeron
Audited AI Stock Picking Performance by Tickeron

Being able to audit the individual historical trade alerts issues by the AI software is also important. Both Trade Ideas and Tickeron allow you to see all historical trades, whether they win or lose; the key here is transparency.

Individual AI Trades Audit Trail - Tickeron
Individual AI Trades Audit Trail – Tickeron

Artificial Intelligence Stock Picks & Portfolios

Tickeron provides specific stock picks using its artificial intelligence engine but also allows you to run the algorithm on a specific index or watchlist, to generate trading opportunities on your selection of stocks. Tickeron also offers innovative portfolios which use AI to build a portfolio with characteristics like diversification and high return. One specific AI stock asset allocation is called “GROWING BIG DATA & CREATING BLOCKCHAINS PASSIVE,” which selects the best mix of AI stocks and blockchain companies.

AI Stock Trading Portfolios Curated By Tickeron AI
AI Stock Trading Portfolios Curated By Tickeron AI

All in all, having tested Tikeron, I have to say that Tickeron is a very professional, sophisticated, and easy-to-use stock market AI software that delivers results. Tickeron is well worth trying.

Visit Tickeron

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3. TrendSpider: AI Stock Charts & Pattern Recognition

TrendSpider is a fast-growing company led and founded by Dan Ushman.  The company was set up in 2016 to create a unique service that automates and improves the labor of technical analysis of stock charts. In 2018 I awarded TrendSpider an innovation award. Unlike anything I have seen before, this software employs artificial intelligence and massive mathematical compute power to detect trends not seen by merely looking at charts.

The use of AI in TrendSpider is pervasive throughout the software. TrendSpider uses AI to intelligently analyze and plot stock price trendlines on multiple timeframes on a single chart. It is also able to plot Fibonacci lines automatically,

AI Stock Charts & Backtesting with Trendspider

TrendSpider has fully automated AI-driven trendlines, Fibonacci & Multi-timeframe analysis on stocks, Forex, Crypto & Futures.  Add to that a robust backtesting engine, and you have a great technical analysis platform.

TrendSpider takes a different approach to backtesting.  Because the platform is built from the ground up to detect trendlines and Fibonacci patterns automatically, it already has an element of backtesting built into the code’s heart.

The highest probability trendlines are automatically flagged, and you can adjust the algorithm’s sensitivity that controls the detection to show more or fewer lines.

They have also implemented a strategy tester that allows you to type what you want to test freely, and it will do the coding for you.  It is a smooth and simple implementation that had me up and running in minutes.  One of the elements I like is the ability to adjust your backtest conditions on the fly, and the “Price Behaviour Explorer” and “System Performance Chart” automatically update.   You can jump into coding if you want to, but the key here is that you do not HAVE to.

TrendSpider BackTesting Entry & Exit Point Chart
TrendSpider AI BackTesting Entry & Exit Point Chart

Integrated backtesting of automated trendlines, showing win-rate, profitability, and drawdown is a new addition and warmly welcome; the team propels TrendSpider into one of the industry’s leading technical analysis packages.

They have also implemented a strategy tester that allows you to type what you want to test freely, and it will do the coding for you.

TrendSpider Price Behavior Explorer System Backtesting
TrendSpider Price Behavior Explorer System Backtesting

It is a smooth and straightforward implementation that had me up and running in minutes.  One of the elements I like is the ability to adjust your backtest conditions on the fly, and the “Price Behaviour Explorer” and “System Performance Chart” automatically update.   You can jump into coding if you want to, but the key here is that you do not HAVE to.

TrendSpider Backtesting Video

TrendSpider AI For Stock Analysis

  • Automated Trend Line Detection
  • Automatic Multi-Time-Frame Analysis
  • Simple & Powerful Backtesting
  • Real-time Exchange Data Included in Price
  • Automatic Fibonacci Trend Detection
  • Stocks, ETFs, Forex, Crypto, Indices & Futures
  • Auto Candlestick Recognition
  • AI Integrated Pattern Recognition
  • Excellent Charts & Indicator Selection
Try TrendSpider with a Free 7 Day Trial * Read the Full TrendSpider Review

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4. MetaStock: Forecasting & AI Algo Systems

MetaStock is a stock market technical analysis and charting service with over 600 types of charts and indicators. MetaStock allows charting of Stocks, ETFs, Indices, Bonds & Currencies. MetaStock has industry-leading AI stock backtesting & forecasting capabilities. 

Another area where MetaStock excels is what they call “Expert Advisors.” MetaStock’s Expert Advisors are essentially Trading Bots designed to help you understand and profit from technical analysis patterns and supply and demand fluctuations as a beginner or intermediate trader.  These algorithms are not as advanced as the stock market AI provided by Trade Ideas, but you can improve upon them yourself with a little coding knowledge.

MetaStock’s Smart Backtesting

As you launch MetaStock, you will be presented with the power console enabling you to select what you want to do quickly.  Select System Test, and you will have access to 58 different systems you can backtest.  I selected the Equis – MACD Expert System in the example below, and I ran in on the entire Nasdaq 100.

After 60 seconds, the backtest was completed and presented me with a list of every buy or sell trade and, of course, the drawdown on the portfolio chart that you can see above.  You can click through to any trade to see the trade background, trade size, duration, and profit or loss.

Of course, the inbuilt systems will not make you super-rich; the reason you want to backtest and develop your own winning system is to get an edge in the market.  With some scripting or programming skills, you will be able to achieve this with MetaStock.  If you do not, you can ask MetaStock or one of a considerable number of MetaStock Partners to assist you in building your system.

MetaStock System Tester - Backtesting Platform
MetaStock AI Trading Bot System Tester – Backtesting Platform

There are also many premium stock trading systems for MetaStock sold by their partners and usually backed up with training and webinars to support them.

Benefits of MetaStock

  • Great Selection of Automated “Expert Advisors”
  • Excellent Deep Backtesting
  • Unique Stock Price Forecasting
  • Large Library of Add-on Professional Strategies
  • Number 1 For Charts, Indicators & Real-Time News
  • Refinitiv Add-On Rivals Bloomberg Terminals
  • Great Customer Support & Educational Webinars
  • Works Online & Offline
3 Months for 1 on MetaStock Read the Full MetaStock Review

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5. Vectorvest: AI for Market Timing

Dr. Bart DiLiddo founded VectorVest over 40 years ago to provide a simple-to-use system for recommending buy and sell signals to investors based on a proprietary stock-rating system based on Value, Strength, and Timing.

VectorVest software is straightforward to use because it promotes the Value, Safety, and Timing system. This means they have a minimal variety of stock market indicators; they provide only what is needed to trade within their VST system parameters.

VectorVest AI Rules

VectorVest continually evaluates every stock on the exchanges they cover to provide their propriety ratings.

  • RV Relative Value shows the estimated return versus a AAA Corporate Bond.
  • RS Relative Safety measures the consistency of a companies financials.
  • RT Relative Timing is a technical indicator that attempts to define the short-term trend of a stock.
  • VST Value-Safety Timing indicator is an aggregation of RV, RS, and RT, essentially rolled up into one number.

Ultimately, VectorVest recommends that you should trade stocks with good fundamentals, moving in an up-trend, as the market is in an uptrend.  This, to me, makes sense and is the foundation of my stock investing strategy.

VectorVest RV, RS, RT & VST Stock Rating System

VectorVest RV, RS, RT & VST Stock Rating System

VectorVest Performance

My only issue with these ratings is that they are proprietary, so we have no ideas how they are calculated.  Usually, if proprietary indicators are the unique selling point of stock market software, you would want to publish confirmed results of the system’s effectiveness. Unfortunately, that does not exist.

The only published VectorVest performance is a 20-year-old reference to fantastic returns of 2,000%+, which is unrepresentative of reality.

But does the VectorVest rating system produce market-beating gains? There is no proof for that.

While VectorVest has not published performance metrics, that does not mean it does not help; it is just unproven.

VectorVest AI Benefits

  • Simple to Follow System
  • Specific Buy & Sell Signals
  • Market Timing Signals
  • US, Canada, Australia, & Euro Stocks
Visit VectorVest Read the Full VectorVest Review

AI Stock Trading Summary

If you are looking for AI stock software that uses Bots to execute profitable day trades automatically, then Trade Ideas is a perfect choice. If you seek a broad selection of profitable AI stock-picking systems to generate trade signals or even structure winning portfolios, then Tickeron is the best choice. If you want to use AI stock charts to perform your backtesting and pattern recognition, then TrendSpider is ideal.

Frequently Asked Questions

What is AI & Backtesting in Stock Trading?

As the creator of three successful algorithmic approaches to investing (the Stock Market Crash Detector, LST Beat the Market System & MOSES), I know that none of this is possible without backtesting a trading strategy. Backtesting means testing a hypothesis on historical data and then assessing how often that hypothesis is true.  In this comparison, all five of the AI stock trading software providers use rigorous backtesting to improve the chance of trading success.

Is AI Good For Trading?

Yes, AI is good for trading; most major investment banks use AI for arbitrage and portfolio selection. Modern AI trading software is now available for retail investors, providing automated trading with audited past performance and risk analysis. AI has finally matured for stock trading. No one can guarantee a profit using AI for trading, but it does stack the odds in your favor.

Is AI Trading Legal?

The use of AI in trading is perfectly legal. As detailed in Dark Pools: The Rise of the Machine Traders, investment banks, dark pools, and market makers have been using AI to profit from arbitrage and inequity in stock prices. Twenty years later, AI trading is now available to retail investors through established companies like Tickeron and Trade Ideas.

Can You Use AI to Predict the Stock Market?

Yes, AI stock trading algorithms are designed to predict the future direction of stocks and the stock market. However, they are not perfect predictors of the market. If an AI algorithm achieves a prediction accuracy of 60% or more, it is considered highly successful.

“An exceptional trader would be thrilled with a 51% success rate—similar to the house edge at a Las Vegas blackjack table. Renaissance Technologies, perhaps the most profitable quant firm in the world, has generated a vast fortune by leveraging bets with these odds. J4 Capital, which has only two other employees, claims to have a success rate of nearly 60%.”

How Reliable are Trading Bots?

Trading Bots are only as reliable and the AI engine and algorithms that support them. The only indication of reliability is an audited track record of past performance. No one truly knows how reliably Trading Bots will perform in the future; we can only see past performance.

Can Trading be Automated?

Yes, trading can be automated; in fact, over 80% of stock market trading is automated because investment banks, hedge funds, and market makers operating dark pools use computers for high-frequency trading (HFT) and to arbitrage differences in asset prices between markets.

Do Trading Bots Work?

Yes, Trading bots do work, but future performance is never guaranteed. An AI algorithm may work for some time, but the market dynamic, business cycle and investor sentiment are always changing, which means different AI trading strategies need to be adopted in specific situations.

What is the difference between AI, Machine Learning & Deep Learning?

AI is a broad category that includes machine learning and deep learning. AI refers to the execution of rules/algorithms that mimic human behavior. Machine learning refers to rules that allow a machine to form assumptions based on its data and begin developing its own rules, essentially learning. The final area of AI is a subset of machine learning known as deep learning; here, the machine teaches itself new behaviors based on its current data and past experience.

Our research shows that machine learning or deep learning employed in stock trading is exclusively available to institutions or hedge funds, as in the case of J4 Capital. This does not mean that broader AI rules execution cannot be successful in trading; it simply means that a revolutionary machine-driven approach to trading is not there yet.


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6 COMMENTS

  1. Hello Liberated stock trader,

    I read your review on AI-systems and found it very useful. I am testing the trade-ideas Holly-AI at the moment. My problem is: the commissions… Although low (1$ per 100 shares or 5$ per 1000), they minimize the profit. You wrote that one could make about 20% a year. I have all three segments running, assuming 10.000 $ of buy and sell together every day invested ( and flattened), how much should I be making in one year? 10.000 x 0.2 = 2000? Minus commissions? That would not even cover the costs?! Could you explain? If I wanted to invest more four or five real bad days in a row would wipe out my account, wouldnt they?
    Thanks in advance… A “trader”

    • Hi Bernd, I forwarded your question to my contacts at Trade Ideas, here is the answer to your question from Chris Varley @ trade-ideas.

      Hello,
      While I do not have the exact figures on how IB structures commissions (one of the two brokers we directly link to) From my experience with them and the commissions structure I selected with them it works out to be about $1 in and $1 dollar out per trade when taking 150-300 shares per trade, so realistically those commissions should not bare much affect on your trades. They will add 1-2 cents at most to the cost basis per share.

      Example: you buy 200 shares market at $15 your cost basis is $15.01 When buying more shares the commission goes up a bit the cost basis will remain relatively the same

      You can have a look at IB’s page for the different commission structures https://www.trade-ideas.com/ibkr

      You would have to pay IB for live data if you are looking at automation with Holly and that costs about $4.50 a month for one plan, or you can take a $10 plan and have the fee waved if you have $30 in commissions a month.

      Etrade which is the other broker we link to has no commissions or data fees.

      If you are only looking to manually trade then you can go with any broker you choose

      As for the question what you should be making in a year- There really is no way to know, aside from commissions there are other factors involved. There is slippage, HTB stocks or No Borrow stock, and while these things do not happen often they play a role.

      This here is a video I did on Holly in simulation with some realistic thoughts behind it>https://www.youtube.com/watch?v=vQ6wFHvbT80&list=PLrjuUll3PvdJUKmXXA8wqtaSzc7JndiHY&index=11&t=10s

      I would also like to invite you to our daily 12pm Est Q&A session and/or our 3:30pm Est Q&A session were we can address any other questions. Here is that link https://www.liberatedstocktrader.com/trade-ideas-trading-room This room goes Live at 9am Est with Barrie but has the live Q&A’s at the aforementioned times

      Best,
      Chris Varley

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