AI Trading Signals
Artificial intelligence (AI)-based trading signals are starting to see more and more traction among retail and institutional traders. But what exactly are they and how can they be used?
A trading signal interprets and analyses data to determine whether you should buy or sell a security. They can be a great way to improve your trades and help you make rational decisions. Trading signals also allow people to copy the trades of other successful traders.
However, now, thanks to the introduction of AI, trading signals are becoming even more useful. By AI being able to analyse huge amounts of data, it can help provide the exact trading signals for individual assets that will have a high probability of success. The AI trading signals can now provide the explicit entry price, stop loss and take profit. These signals also follow risk management rules which make them suited to help traders optimise their risk/reward ratio.
What do AI Trading Signals base their data on?
AI trading signals typically inform a trader on buying or selling, an entry price, a stop loss price and target price. Most trading signals tend to be focused on forex, however they are other trading signals for markets such as stocks, commodities and indices.
Each AI trading signal provider base their signals on different pieces of data, however these are some of the pieces of data which are usually used to create the signals:
This is where AI will read the market and implement trading decisions based on the recent and actual price movements.
AI can analyse purchase price parity (PPP) metrics to find undervalued or overvalued currencies.
News/Social Media analysis
AI can analyse real-time data from news providers, social media and blogs and then create a trading signal to the trader based on this information.
Through using historical data and analysing the charts of various instruments the artificial intelligence can provide technical indicators and signals to the trader.
How can you use AI Trading Signals?
There are various factors you should consider before using AI trading signal providers. Here are some of the leading factors worth considering:
Cost of the signals
Signals are usually subscription based, however the costs vary widely. Some providers are fairly low cost and others can be very expensive, therefore it is important to make sure you select a signal provider that fits within your budget.
Timing of the signals
Many signals require the trades to be executed immediately, therefore you need to stay on top when the signals are sent out and have access to your trading platform when the signals are sent out to you. Due to the signals needing to be executed quickly you need to make sure you use a signal provider that operates in or near your time zone.
Mode of delivery
Every signal provider has different ways of delivering the signals, many use platforms such as Telegram, WhatsApp, SMS and Email. You’ll need to make sure you have access to these platforms in order to ensure you receive the signals.
Type of signals
The signals you receive will depend on your account size and your availability. There’s also signals for day traders and swing traders, so you’ll need to choose which one you’d prefer.
Reliability and reputation
Finally, you’ll need to make sure you do your due diligence and ensure that the AI trading signal provider is reliable. In order to do this check the reviews of the provider and how good their win rate is.
Where can you find AI Trading Signals?
There are now many options available to traders that want to use AI trading signals, however choosing the one right for you can be difficult. If you trade based on an incorrect signal it can result in substantial losses. Before you hand over money it’s important to make sure you trust the provider.
In order to help you determine which AI trading signal provider is right for you we’ve listed some examples of businesses you can use below.
Wise Invest is an AI trading signal provider based in Florida, USA. Founded by experts from Harvard, MIT and Oxford, they provide financial education and AI forex trading signals. Their AI analyses millions of pieces of data to find the highest probability of profit in the near future for forex trading. Their signals are comprised of currency pairs, direction (buy or sell), amount to invest, take profit and stop loss.
If you subscribe to this provider, they send real-time alerts via email and Telegram. Once you receive the signals all you have to do is copy and paste them into the brokerage account.
Spread Charts are a company based in Prague, Czech Republic. Their AI trading signals make predictions in real-time. By also implementing machine learning they are able to continually pick up and learn new data. Spread Charts signals don’t just take into account seasonality either, but other types of data as well.
They don’t just provide AI trading signals, but also offer tools for analysing commodity futures and spreads. If you do subscribe to this provider, they send real-time alerts via their app.
A-Quant is a company based in Nicosia, Cyprus. They produce trading signals for a number of different assets. By analysing various sources of fundamental, market data & news they are able to produce trading signals that have a high probability of success.
If you subscribe to this provider, they send real-time alerts via their app.
Why use AI Trading Signals?
- The biggest advantage of using AI trading signals is the time it saves. Having to manually analyse the market, identify directions and recognise trends is a very time consuming task and by using AI trading signals you’re saving precious time.
- You do not have to have expertise in trading. By following the AI trading signals you can take the signals and input them into your trading account, allowing for hands-free trading.
- AI is much better at predicting price trends. By being able to analyse alternative data and using machine learning, it can generate improved trading signals. Information is able to be obtained from a wide variety of sources such as financial news, social media, news, blogs and transactions.
Why not use AI Trading Signals?
- They don’t carry out trades on your behalf, they simply inform you of a potential trading opportunity in a given market.
- They are not an exact indication to how you should trade. Everyone has different risk tolerances and trading styles, therefore what signal is provided to you may not be best suited for you and your preferences. It’s always your responsibility to make sure you properly analyse before making any trading decisions.
- Markets can be unpredictable. At any time, an event whether political or economical can completely flip the market upside down. If this happens any trading signals can become irrelevant. Therefore, it’s important to remember that any signal can turn into a bad prediction due to market conditions.
What alternatives are there to AI Trading Signals?
Jaaims is an Australian based automated trading application. Their app enables investors to leverage artificial intelligence to trade on their behalf. It currently has over 1,000 stocks from around the world that investors can choose from. Their AI software can analyse, predict and make calculated trades for you based on the stocks you choose to trade.
Trade Ideas software monitors every trade of every stock in the markets, by doing this it can notify its customers when it believes any profitable opportunities arise. If you want your very own AI trading assistant that can analyse a huge amount of stocks, then Trade Ideas could be the perfect solution to your advanced modern trading desires.
8topuz offers unique AI based risk-managed trading software that works by utilizing the vast FX trading market and works only with specific currency pairs. 8topuz essentially allows investors to tap into the kind of system that could only be offered by a whole army of high-quality risk managers and traders. Producing a consistent audited ROI of 3-4% per month, it’s one of the most powerful AI trading solutions available to the market.
Final Thoughts on AI Trading Signals
Technological advancements in AI can considerably help investors and traders in enhancing the decision-making process, identifying trends and predicting outcomes. Solutions such as AI trading signals are helping to enhance the trading experience and generate superior results. Thanks to the introduction of AI it can process a huge amount of data, which makes AI trading signals a superior alternative to traditional trading signals.
AI trading signals certainly have their benefits and can be a very useful tool for traders. However it’s also important for you to assess whether they are the right option for you. You need to make sure you carefully assess each signal provider and whether they are reliable. It’s also important to assess alternative AI trading options, such as the ones from the businesses listed above, as they could end up being a better alternative for you and may even generate superior returns.