AI trading software tools are revolutionizing the way people trade and invest.
From scanning and journaling to actual trade execution software, there are hundreds of choices.
With so many options available, how do you know which ones are the best?
Well, that is what we aim to find out today.
We have looked at all the tools and whittled them down to the five best AI trading tools.
Our choices cover everything from trading execution to charting and analytics.
Read on to find out which ones make the cut!
Contents
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- What Is AI Trading Software?
- Analyzing The Markets
- Automated Trading Strategies
- Software #1: Leopard AI
- Software #2: QuantConnect’s Lean Algorithmic Trading Engine
- Tool #3: Trade Ideas A.I. Holly
- Software #4: TrendSpider
- Software #5: VantagePoint AI Software
- Conclusion
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What Is AI Trading Software?
AI Trading software utilizes artificial intelligence and programming to help traders analyze markets, identify trends, and execute trades.
The benefit of AI tools is how much data they can analyze.
They can look at hundreds of thousands of candles worth of information and identify potential trends and patterns humans can miss.
They can also help you backtest your trading against these models and execute live trades.
Analyzing The Markets
We will look at two main categories of AI trading software, and the first of these is used to analyze the markets.
They can analyze millions of data points across thousands of stocks in seconds.
Many of these tools also provide alerts when they detect a pattern in a name, so you don’t have to constantly monitor every stock you trade.
Some of the basic data and insights these tools provide include:
- Price movement predictions and forecasts
- Risk analysis and management
- Identifying overvalued or undervalued stocks
- Detecting technical patterns like head and shoulders, cup and handle, etc.
Analyzing The Markets
The other tools we have are trade automation and backtesting.
These tools use AI and large models to help analyze the market and set up live trading environments when certain criteria are met.
These can range from things as simple as moving average crosses to the incredibly complex algorithms you code up as the trader.
These tools are also a little more technical, requiring a more sophisticated understanding of both the markets and technology.
Software #1: Leopard AI
Leopard AI is software hosted by Sigma Financial that focuses on cloud-based trading solutions.
They have several enterprise-grade solutions, but we are focusing on their retail solution: Leopard.
Leopard AI is a mix of trade automation and pattern recognition, and its AI model is trained on millions of data points.
This allows the real-time model to show the trader what pattern is forming.
Patterns
Leopard AI is getting trained on an evergrowing set of patterns to recognize; currently, it is working with the following patterns in a live environment:
- Double Top/Bottom
- Triple Top/Bottom
- Cup and Handle
- Inverse Cup and Handle
- Rounding Top/Bottom
- Head and Shoulders
- Inverse Head and Shoulders
They are also working on developing the Support and Resistance levels and Pennants/Flags/Wedges.
Instruments and Charts
Leopard AI only works with Forex and Cryptocurrencies, although they are actively developing to add indexes and equities to the list.
They also currently only look to support candlestick charts on the lower timeframes.
These include the minute and hourly timeframes out to 1 day.
Weekly and monthly candles and patterns are scheduled for release in the coming months.
Finally, they offer several indicators to put on the charts.
Volume, Moving Averages, the MACD, and the RSI are currently the only indicators available.
Still, they are working on adding a full suite of technical studies ranging from Bollinger Bands through linear regression channels and more.
Overall, Leopard is an excellent tool for chart and pattern traders.
It has a lot of potential for traders, especially as it continues to hone its AI models and add to its indicator suite.
Software #2: QuantConnect’s Lean Algorithmic Trading Engine
QuantConnect’s Lean is a powerful open-source Algorithmic trading engine.
It gives you everything you need to develop and backtest trading Algorithms.
The platform provides a development environment where you can code your strategies in C# or Python, a backtesting engine to evaluate your Algorithms, and a cloud environment to deploy and run live trading Algorithms.
This is by far the most complex of the tools that were looked at, but it is truly the most robust.
This platform allows the end user to utilize every possible indicator and run custom calculations and models on hundreds of datasets.
In-depth Backtesting
Lean offers comprehensive backtesting capabilities to evaluate the theoretical historical performance of your custom trading algorithms.
You have access to a huge amount of historical and real-time data that you can use for backtesting, including:
- Stock prices
- Futures data
- Forex rates
- Options data
- Cryptocurrency data
The backtesting platform also gives you access to custom datasets to QuantConnect and alternative datasets such as home prices and weather and sentiment data.
You can run unlimited backtests in a cloud-based environment and optimize your model using AI tools and commands.
Live Trading
Once you have developed and optimized your Algorithm, you can deploy it for live trading with supported brokers like Interactive Brokers, Oanda, and more.
Your Algorithm will trade automatically based on the live market data and your strategy in a cloud-based environment.
Lean also provides a risk management framework to control parameters like maximum daily loss to avoid unwanted drawdowns.
Community and Education
One area that also really sets Quanconnect apart is its active community of traders and developers.
They have a solid educational section that can teach you how to utilize their libraries, interfaces, and datasets.
If this isn’t as in-depth as you need, you can always visit their forums, which have many answers, examples, and sample algorithms. Suppose you still can’t find what you seek with the forums.
In that case, you can turn to QuantConnects’ custom-trained AI Chatbot (similar interface to ChatGPT) to help you correct your code, look for analysis, and fix any errors you see using the LEAN engine or the QuantConnect site.
Tool #3: Trade Ideas A.I. Holly
The third AI trading tool we will look at is Trade Ideas’ AI assistant, Holly, which uses advanced machine teaching algorithms to analyze the markets in real time and spot some of the best trading opportunities.
Ex-hedge fund experts and data scientists designed Holly to think like a pro trader and identify 50+ patterns that can be alerted through the trade alerts platform.
Powerful market scanner
Holly will continuously scan the markets for the best risk-reward trades across over 6,000 US equities and ETFs.
She looks for catalysts like earnings reports, insider buying, and momentum bursts.
Whenever Holly spots an opportunity, she alerts you instantly so you can evaluate it and place the trade.
You can also customize Holly to alert you only for the trades you’re most interested in, whether pre-earnings momentum plays, breakouts, reversals, or something else.
You will certainly find something that fits your trading style inside Holly’s 50+ strategies.
Holly allows you to filter further for specific market caps, sectors, price ranges, and more to customize your alerts to fit your strategy.
Built-in risk management
Another benefit of using the Holly AI Assistant is that she will monitor your risk.
There are three risk categories:
Aggressive: This places no stop and is not recommended for live trading.
Moderate: This sets a hard stop and also a time stop on the trade.
If either the timeframe is exceeded or the stop loss price is hit.
She will exit the trade.
Conservative: This risk profile has two-stop methods: moderate and trailing stop, a price action stop that exits the trade when unexpected price action occurs, and a target for the trade.
This is designed to get out of the trade with the most capital possible and the least amount of risk.
Holly uses AI as one of its strong suits by analyzing and constantly training on large dynamic datasets.
As a trader, this gives you access to some of the best technology in a very easy-to-use interface.
Holly can be an incredibly powerful AI software when used with your own trading strategy.
Software #4: TrendSpider
TrendSpider is probably one of the better-known AI trading software currently on the market.
Their claim to fame is that their charting software automatically detects a host of price patterns.
This is just the beginning of what TrendSprinder can offer.
Data and Analysis
In addition to their charting platform, you can access unlimited alerts, 15 workspaces/dashboards, AI pattern recognition tools, automated chart analysis, watchlists, and seasonality reports.
All of these can help filter down to the best trades possible.
This is all run over free real-time data (if you are a retail trader) on Stocks, ETFs, Futures, Currencies, and Cryptocurrencies. Indices and OTC stocks are also included; however, these are not real-time data sources.
They also offer access to dark pool data, unusual options activity, short volume, analyst ratings, and stock sentiment data.
All of these can be incorporated into a custom strategy, which will be discussed in the next section.
Strategy Development, Idea Generation, and Specialty Tools
Trendspider also offers the ability to develop custom strategies and backtest them over multiple datasets.
In addition to the usual candlestick charts, you can also backtest against the alternative data sources discussed above, multiple symbols at a time, and up to 7,000 historical bars.
If you need help creating ideas for your trades, you can rely on Trendspider’s continuous real-time scanning to help you out.
They also offer data flow for real-time trend detection and short- and long-term analysis so that you can research any name you want to enter.
Lastly, they offer many specialty tools that have been integrated with AI technology to help improve your trading.
The easiest to recognize is their ChatGPT integrated assistant, which helps with signal and condition creation.
They also have their in-house smart assistant to help with other tasks and navigation around Trendspider.
You can also create your custom indicators with Javascript and access their ratio charts to look for a trading edge in comparative data.
Overall, Trendspider is a great tool that integrates AI in several ways.
From the obvious, like the ChatGPT AI chat, to the more subtle, like pattern recognition and continuous data scanning, they have adapted well to introducing these new tools.
Software #5: VantagePoint AI Software
The last AI software we will look at is VantagePoint AI.
This is the only software tool with its entire product suite around the AI concept and has been utilizing it for the last several decades.
VantagePoint utilized custom-trained neural networks (the underlying technology behind large-language models like GPT4) to analyze current market events, prices, and volumes and make a short-term price prediction on it.
They also claim that their models are accurate over 80% of the time with their predictions.
Markets
VantagePoint AI works across just about every market.
They have trend predictions for almost every Future and Currency product available to trade, as well as cryptocurrencies.
You can also run the software in any sector in the US and Canadian stock markets and on ETFs.
Market Analysis
As discussed above, VantagePoint AI utilized in-house neural network models to predict future market movement.
They do this through large dataset training and intermarket correlation.
They look for how other markets and factors influence prices and suggest future prices based on historical correlations.
Vantage Point own several US patents for their analysis principles and neural network prediction methods.
The one major drawback for VantagePoint is the price.
While they are a lifetime license, they are extremely expensive due to the nature of their product.
If you were to utilize the other services for the entirety of your trading career, they would probably be comparable, but those are paid monthly instead of a one-time cost.
Conclusion
So there you have it—the top 5 AI trading tools to supercharge your investing.
From social analytics to algorithmic trading, these platforms have found creative ways to integrate the new world of AI into trading.
While AI will likely never replace humans in trading, learning to utilize it as a tool will help you gain an edge over other traders.
With the right AI, you may beat the markets and take your portfolio to the next level.
We hope you enjoyed this article on the best AI trading software.
If you have any questions, please send an email or leave a comment below.
Trade safe!
Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.
Original source: https://optionstradingiq.com/best-ai-trading-software/