Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise…
Alan is the Editor-in-Chief of Techopedia and is responsible for ensuring all the content is accurate, up to date, and relevant. Alan has previously worked…
We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.
Disclosure
When you buy through affiliate links in our content, we may earn a commission at no extra cost to you. Learn how our funding model works. By using this website you agree to our terms and conditions and privacy policy.
Why Trust Techopedia
We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.
Disclosure
When you buy through affiliate links in our content, we may earn a commission at no extra cost to you. Learn how our funding model works. By using this website you agree to our terms and conditions and privacy policy.
AI trading software allows you to streamline your research and investment processes. While some platforms offer AI-backed insights and predictions, others offer automated trading services.
In this guide, we explore the 15 best AI trading platforms for 2024. Read on to discover which AI-backed platforms can take your trading skills to the next level.
The Top AI Trading Platforms Ranked
The 15 best AI trading platforms are listed below:
Dash2Trade: New AI trading platform offering trading bots, technical signals, social analytics, and more.
Perceptrader AI: Innovative AI-powered solution, boasting advanced features that can maximize trading performance.
Coinrule: Enjoy algorithmic trading without learning a single line of code.
Cryptohopper: Popular crypto trading bots that work on various exchanges, 24/7.
Binance Trading Bots: Create your own trading bots or copy bots from the marketplace.
OKX Trading Bots: A range of pre-built bots used by over 360,000 global traders.
ByBit Trading Bots: Build your bot out of several trading strategies, including grid, martingale and DCA.
Bitsgap: Popular crypto bot platform with multi-exchange support and advanced features.
SMARD: A smartphone-based automated crypto trading bot using a momentum effect algorithm.
ArbitrageScanner – Best trading tool for crypto arbitrage and blockchain analysis.
Pionex: Trading platform offering AI trading bot, allowing you to trade cryptocurrencies passively.
Tradesanta: Trading platform with bots, copy trading and trading signals features.
Haasonline: Create and optimize your bots, use crypto signals or create your own strategy, 3-day free trial.
Kryll: Connect multiple exchanges and use the bots directly from the Kryll dashboard.
OctoBot: Automate your trading strategies on TradingView and try them with virtual funds before going live.
The Best AI Trading Software Reviewed
In this section, we review the 15 best AI trading platforms listed above.
1. Dash2Trade – Best AI Trading App for Crypto with Signals, Backtesting, & More
Dash2Trade is a powerful AI trading platform with a wide array of features to help traders find profits in the crypto market.
One of the most helpful AI features Dash2Trade offers is access to crypto trading bots. Right now, the platform has 2 trading bots: one based on a Dollar Cost Average (DCA) strategy and another based on a Grid trading strategy.
Dash2Trade is working on additional bots that will roll out soon, plus a tool to enable traders to create their own crypto bots.
Another great way Dash2Trade is using AI is to deliver technical-based trading signals. Dash2Trade analyzes each cryptocurrency’s chart to determine if it has a bullish or bearish technical setup.
Dash2Trade also offers bullish/bearish signals for social media chatter, which can be very helpful for identifying small-cap cryptos that are set to explode. The platform also uses AI to score every new crypto presale on a scale of 0-100.
Traders can build and test their custom strategies that incorporate Dash2Trade’s AI signals using a backtesting module.
Dash2Trade offers a free tier with limited access to the platform. For full access, traders can sign up for an annual subscription for just $102 paid in D2T tokens or $120 paid in ETH.
AI Trading Platform
Dash2Trade
Type of AI Trading Tools
AI-backed trading bots that buy and sell cryptocurrencies autonomously. Available strategies include Dollar Cost Averaging and Grid trading.
Supported Assets
Cryptos
Fees
No fees to use bots. $102 per year in D2T
Minimum Deposit
None
Minimum Investment Requirements
None
Pros
Offers DCA and Grid trading bots for crypto
Uses AI to deliver technical trading signals
Analyzes social media sentiment to find trending tokens
Scores crypto presales to identify potential winners
2. Perceptrader AI – Offers Some of the Best AI Trade Tools for Forex
Perceptrader AI is an innovative trading bot designed that leverages the strength of artificial intelligence to help forex traders improve their returns. The trading bot is gaining huge attention due to its impressive performance and distinctive features.
Perceptrader AI comes with world-leading technologies like ChatGPT and Bard to analyze market forecasts and signals. With ChatGPT, the trading bot can predict market dimensions and provide insights into recent market data for certain currency pairs.
Also, the platform’s AI language model supports accurate forecasts that help users make the best trading decisions. That said, Bard serves as an alternative to ChatGPT, providing users with numerous and versatile trading strategies.
Leveraging its AI infrastructure, Perceptrader AI offers a profit factor of about 1.99 which is just a little point outside the much-coveted 2.0 mark. Also, the average wins and losses of this platform stand at 4.66 and 6.38 underlying how Perceptrader AI has the capability to make users net huge profit.
Despite being a paid tool, Perceptrader AI offers a 15-day free trial, allowing users to explore its lineup of advanced features without paying a dime. Additionally, it has a 30-day money-back policy that allows users to evaluate the profitability of the tool and determine its efficacy.
AI Trading Platform
Perceptrader AI
Type of AI Trading Tools
An AI-powered trading bot that analyzes and predicts market dimension.
Supported Assets
Currencies
Fees
Lifetime payment of $1,980 – No recurring monthly or annual charges.
Minimum Deposit
N/A
Minimum Investment Requirements
N/A
Pros
Combines AI and deep learning algorithms to enhance trading performance
3. Coinrule – Easiest AI Trading Platform for Beginners
Coinrule simplifies A.I. trading for beginners, offering such trading templates as:
Buy the Dip: a stop-loss protects every trade, as the bot buys the dips of a coin’s price and sells the highs for a profit.
Catch the Swing: Buying and selling based on RSI in times of sideways markets with high volatility.
Uptrend Flash Crash: Based on a multi-timeframe, buy-the-dip approach to optimise each trade.
Alternatively, you can build your own. Coinrule uses the IFTTT (If This Then That) model, which allows you to define conditions that trigger actions on your trading accounts.
The free version of their automated trading bot supports 20 exchange platforms (users can pay for access to an unlimited amount of exchanges), including Binance, Kraken, OKX, Gemini, KuCoin, Robinhood and many more. You can set your parameters on via the Coinrule website and deploy to your chosen exchange.
You’re able to trade 24/7, after choosing from one of three pricing plans, with the most expensive allowing up to 50 trading rules to run and 10000 executions of each of those rules – all over a 24 hour period. They also provide one-to-one training sessions, allow for unlimited trade volume and can execute trades ultra-fast from a dedicated server.
Coinrule’s demo exchange offers the ability to generate numerous trial rules and strategies. These demo rules enable you to make various trading choices, right or wrong, and gain insights from them without risking your funds. The system supports the application of both market and limit orders within these demo rules.
AI Trading Platform
Coinrule
Type of AI Trading Tools
Pre-built AI trading bots developed by Coinrule, using IFTTT (If This Then That) model.
Supported Assets
Cryptos
Fees
Coinrule has adopted a four-tier subscription payment plan – ranging from free to $499.99 a month.
4. Cryptohopper – Automate Your Strategies With a Bot Maker and Use on Multiple Crypto Exchanges
Cryptohopper is a user-friendly platform that helps traders automate their strategies. You can either build your own bot with the bot maker or use a pre-configured trading bot.
Some of the strategies supported by the automated trading platform are arbitrage – a popular strategy where you take advantage of price differences between various crypto exchanges – and market-making bot where the bot trades the spread between bid and ask prices to provide liquidity and make profit.
Moreover, Cryptohopper offers copy trading where you can find profitable traders and copy their trades. If you don’t want to create a trading bot, this can be a solid alternative.
Cryptohopper has implemented several features to help you control trades better, including stop loss and trailing stops, as well as backtesting to see how your strategy would have performed in the past. Those who have assets across multiple exchanges can use the free dashboard, connect their exchanges and trade their assets from one place.
To get the full experience, subscribe and get 30% with code “CLICKOUT”.
AI Trading Platform
Cryptohopper
Type of AI Trading Tools
Arbitrage and market-maker AI bots that work on multiple crypto exchanges
Supported Assets
Cryptocurrencies
Fees
Annual subscription fees plus market trading fees depending on the exchange
Minimum Deposit
None
Minimum Investment Requirements
None
Pros
One of the best AI trading platforms
Arbitrage and market-making bots available
Can build custom bots
Get 30% discount with the code “CLICKOUT”
Cons
Subscription fees may be high if you’re using multiple open positions
5. Binance Trading Bots – Automate Your Trading With Pre-Built or Custom-Built bots
Binance, the largest crypto exchange in terms of trading volume, offers its users the option to build their own custom bots or use pre-built bots from the marketplace.
There are over 100,000+ active strategies with a total value of over $120 million being traded actively. Some of the available strategies to create bots include grid – for both spot and futures trading – rebalancing bot, spot algo orders and auto-invest.
The bot marketplace is where you’ll find most of the available bots. Some require a certain minimum investment and run for a select period of time, such as 7 days. Moreover, you can see how many traders use a particular bot, which shows how popular it is. Find a bot that suits you by using filters.
AI Trading Platform
Binance Bots
Type of AI Trading Tools
Marketplace with thousands of AI-backed trading robots.
You can then activate the robot and allow it to trade 24/7
Supported Assets
Cryptocurrencies
Fees
No fees
Minimum Deposit
Varies
Minimum Investment Requirements
Varies
Pros
Supports AI-backed trading robots – allowing to trade passively
Transparent marketplace with information about each AI strategy
No fees to use the AI bots
Academy section where you can learn how each strategy works
Cons
There is no guarantee your chosen bot will generate profits
6. OKX – Tier-One Crypto Exchange With Over 1,000 AI Bots to Choose From
OKX – one of the largest crypto exchanges globally, offers a huge range of AI robots. This includes a selection of pre-built bots that specialize in arbitrage trading, dollar-cost-averaging, and order slicing. OKX-backed bots are completely free to use. That said, OKX also has an AI bot marketplace that supports over 1,000 creations.
These were developed by third parties and there are many different strategies to choose from. What’s more, you can also choose an AI trading bot that specializes in specific pairs. For example, there’s a bot that trades BTC/USDT with leverage of 20x. This has generated a profit of 16.34% since inception.
Third-party bots have a profit-sharing agreement that ranges from 10-30%. This means that you’ll only pay a fee if the bot is profitable. OKX is also one of the best crypto exchanges for low trading fees. You’ll pay just 0.10% per slide on each position that your AI bot enters.
AI Trading Platform
OKX
Type of AI Trading Tools
Pre-built AI trading bots developed by OKX
Marketplace lists over 1,000 bots developed by third parties
Supported Assets
Cryptos
Fees
OKX bots are free to use. Third-party bots have a profit-sharing agreement of 10-30%. Trading commissions of 0.10% per slide
Minimum Deposit
Depends on the cryptocurrency or payment method
Minimum Investment Requirements
None
Pros
Popular crypto exchange offering pre-built AI trading bots
Marketplace supports over 1,000 third-party bot creations
No fees on OKX-backed bots
Trading commissions of just 0.10% per slide
Cons
Some third-party bots charge up to 30% in profit-sharing commissions
7. ByBit Trading Bots – Create Your Bots or Use AI-Recommended Bots
ByBit crypto exchange, which is one of the largest derivatives trading platforms, lets you automate your trading strategies by building your own custom bots or by using bots that are backtested and recommended by AI.
If you decide to build your own bot, your options include grid bot – for futures and spot – dollar-cost averaging (DCA) bot and a martingale bot. Some of these bots have remarkable returns, such as the 78,000,000% APR for the futures grid bot.
Those who want to use pre-built bots can get recommendations from ByBit’s AI, called Aurora. The way this works is Aurora backtests seven days of historical market data and identifies the best strategy that focuses on yield. ByBit boasts over 70% win rate for its futures grid bot.
AI Trading Platform
ByBit Bots
Type of AI Trading Tools
Create your own AI trading bot or use pre-built bots
Supported Assets
Cryptocurrencies
Fees
Only spot/futures trading fees
Minimum Deposit
Varies
Minimum Investment Requirements
Varies
Pros
Create AI trading strategies, such as martingale, grid and DCA
Supports multiple crypto pairs by using USDT as a basis
No fees to use the bots aside from standard market trading fees
Cons
Aurora AI recommendations have a short backtested period
8. Bitsgap – Popular Crypto Bot Platform with Multi-Exchange Support and Advanced Features
Bitsgap is a popular AI trading platform with multiple features that allow traders to automate and optimize their crypto trades across multiple exchanges. The platform supports over 15 of the largest crypto exchanges that help traders handle many exchange accounts from one interface.
It offers its users advanced trading bots for different market situations, including grid bots for sideways markets, DCA bots for highly volatile markets, and futures bots for very high risk and high return on investment. The traders can further customize these bots or use the pre-built strategies.
One other really useful feature of Bitsgap is the backtesting tool that allows traders to test bot strategies on historical data before using real funds. There is also a demo mode to practice paper trading.
Bitsgap provides a professional trading terminal, advanced order types, technical analysis tools, portfolio tracking, AI-driven trading decision support, and strategy optimization.
It’s worth noting that the PRO plan offers a free 7-day trial, which allows traders to try Bitsgap. Afterward, paid plans start at $29 per month, with more discounts if you opt for a yearly subscription.
9. SMARD – AI Trading Platform With Scientifically-Backed Algorithms
SMARD is an advanced automated crypto trading bot designed to operate seamlessly on a trader’s smartphone, requiring no manual setup or configuration.
This tool distinguishes itself by automatically executing trades on behalf of its users, leveraging a sophisticated algorithm based on momentum effect-based scientific research.
SMARD’s algorithm systematically identifies future market winners, offering a hands-off trading experience that doesn’t require understanding current market trends.
A key USP of SMARD is its efficiency and ability to trade 24/7 without needing trader intervention, thus removing emotional decision-making and improving trade execution speed by analyzing real-time market data.
Moreover, SMARD operates without leveraging, trades only in highly liquid instruments, and uses risk control measures like stop losses and trailing stops, ensuring a low-risk trading environment.
The bot’s cost structure is attractive, with no upfront payments required. Fees are only 10% of the client’s profit after the first 30 days.
Additionally, traders can continue to use their accounts for personal trading, provided they do not interfere with the bot’s operations.
SMARD’s algorithm, backed by scientific research on the momentum effect, ensures high returns over time with relatively low risk, making it a promising choice for automated crypto trading.
AI Trading Platform
SMARD
Type of AI Trading Tools
Automated crypto trading bot
Supported Assets
Cryptos
Fees
10% of profit after 30 days
Minimum Deposit
Depends on the crypto
Minimum Investment Requirements
None
Pros
Uses scientifically-backed algorithms.
Operates 24/7 with low risk.
No upfront payment required.
Cons
Fees based on profits may be high for successful trades.
10. ArbitrageScanner – Best Trading Tool For Crypto Arbitrage & Blockchain Analysis
ArbitrageScanner is a top AI trading software that enables investors to leverage the price differences between exchanges, allowing them to make huge profits from the disparities. Thanks to its innovative AI infrastructures, the trading software keeps tabs with more than 60 CEX and DEX, providing users with a timely update on when to buy and sell a cryptocurrency asset.
The tool provides a guaranteed profit of 5-50% of users’ capital per month through its distinctive feature that allows users to leverage some of the most profitable strategies. Some of these strategies are Spot + Features, Features + Features, and Features + Spot.
Also, ArbitrageScanner as an all-around trading software has some real-time AI-powered tools that notify users about the biggest spreads in the market. Leveraging the support of more than 40 blockchains, it makes it possible for users to track the spread between popular networks like Ethereum, BNB Chain, Polygon, and many others.
The platform also keeps tabs on blockchain data, compatible networks, and their coin withdrawal capabilities. Another key attraction for ArbitrageScanner is its intuitive and easy-to-use interface, positioning it as an ultimate tool for newbies and seasoned traders alike.
ArbitrageScanner is more appealing and supports traders with little experience to make huge profits. Just with its search feature, users can discover strategies, investment portfolios, and in-depth analysis of coins. For example, you could replicate a client’s strategy and earn over $1,700 on the STRK token using the Spot + Features strategy. Arbitrage Perpetuals captured the 1.5% difference on the $STRK token between OKX spot and Bybit futures and the client was notified immediately. Earnings were $1500 in 40 minutes, funding rate over 0.2% in 8 hours. And the client continued to receive income from funding every 8 hours.
It is also possible to copy the investment strategies of numerous wallets with noticeable gains and grow your portfolio.
AI Trading Platform
ArbitrageScanner
Type of AI Trading Tools
Crypto arbitrage and on-chain analysis tools that will help you increase your crypto income
Supported Assets
Cryptocurrencies
Fees
Subscription fees plus market trading fees depending on the exchange
Minimum Deposit
N/A
Minimum Investment Requirements
N/A
Pros
Manual bot reduces risk – no need to connect to exchange APIs
11. Pionex – Popular AI Investing Platform with Pre-Built Crypto Bots
If you’re searching for an AI crypto trading bot, check out Pionex. It offers a fully-fledged crypto trading platform that doubles up as an AI bot. This means that you can trade cryptocurrencies automatically without needing to connect Pionex to an exchange. Pionex supports almost 380 crypto markets, so you’ll have plenty of trading opportunities.
This includes some of the best cryptocurrencies to trade, such as Bitcoin, Dogecoin, Solana, Shiba Inu, and Cardano. In terms of its AI bots, Pionex offers several strategies to choose from. This includes a grid trading bot that buys leading cryptocurrencies during market dips and cashes out at pre-defined profit levels. There’s also a dollar-cost averaging bot that’s aimed at long-term investors.
Other strategies include portfolio rebalancing, dual investments, and arbitrage trading. Pionex has a solid reputation and its AI bots have been tested by various YouTube influences. This includes Max Maher (968,000 subscribers), who tested Pionex bots with $10,000 of his own capital. In terms of fees, Pionex doesn’t charge to use its trading bots. Instead, you’ll simply pay a trading fee every time the bot enters and exits a position. This stands at just 0.05% per slide.
AI Trading Platform
Pionex
Type of AI Trading Tools
AI-backed trading bots that buy and sell cryptocurrencies autonomously. Several bot strategies are available, including grid trading, dollar-cost averaging, and arbitrages
Supported Assets
Cryptos
Fees
No fees to use bots, simply pay 0.05% on each buy and sell position
Minimum Deposit
None
Minimum Investment Requirements
Depends on the bot and crypto, but starts from $11
Pros
One of the best AI trading platforms for cryptocurrencies
12. Tradesanta – All-in-One Crypto Trading Platform With Bots and Signals
Tradesanta is one of the rare crypto trading platforms that offes multiple features, such as trading bots, trading signals, copy trading and a trading terminal where you can add multiple exchanges – all via a mobile AI trader app.
This makes it an excellent platform if you’re often on the go and need to monitor your investments and bots closely. Use API keys to connect your exchange, including Binance, OKX, Coinbase, HTX, Kraken and ByBit.
Traders who don’t want to build their own bots can find bots built by other traders on the marketplace. Once you find a strategy you find appealing, use a demo account to see how it would perform. Moreover, you can set stop loss and trailing stops and set take profit targets to optimize the bot performance.
AI Trading Platform
Tradesanta
Type of AI Trading Tools
Multiple AI bots built by experts, or build your own AI tool for trading
Supported Assets
Cryptocurrencies
Fees
Annual subscription from $18 per month if paid annually
Minimum Deposit
N/A
Minimum Investment Requirements
N/A
Pros
Build your own bots
Copy trading and trading signals
Find bots on the marketplace
Trade on multiple crypto exchange via a single dashboard
13. Haasonline – Trading Bots With Multiple Strategies and Free Trial
Haasonline offers trading bots with multiple strategies, including accumulation, grid, market making, ping pong (scalping), arbitrage, and more. Setting them up is straightforward, and you can backtest, and paper trade to optimize the bot’s performance.
Pricing starts with $90 if paid annually for the Lite+ package to up to $990 annually for the Pro package. Luckily, there’s a 3-day free trial to test the platform and see if you like it.
Those who don’t want to use bots can use crypto signals from experts. All you have to do is find an expert you like and subscribe to their signals. Those who want to experiment, can create their own strategies and indicators using the HaasScript language.
All trading tools are available on the cloud, meaning you can access them from anywhere at anytime, including your smartphone or a tablet.
AI Trading Platform
Haasonline
Type of AI Trading Tools
AI bots that use various strategies like arbitrage, grid and market making
14. Kryll – Connect Multiple Exchanges and Trade From a Single Account
Kryll is a crypto portfolio management platform where you can use trading bots to trade your assets across multiple exchanges. Choose from over 280 strategies from the bots marketplace and set it to work on your behalf 24/7.
Supported exchanges include Binance, Kraken, KuCoin, Crypto.com and ByBit. If you have multiple accounts, connect them to the Kryll platform and trade directly without logging in and out of the exchanges.
Kryll lets you build your own trading bots by using a drag’n drop interface. Select trading indicators like MACD and Moving Averages to optimize your strategy. With this technical approach, even beginners can make complex trading strategies that work.
Download the Kryll mobile app to track your assets and use the trading bots even when you’re on the move.
OctoBot is one of the rare crypto trading bots that lets you define your strategy on TradingView and automate your trades. Some of these strategies include buying a coin when the price rises by certain percentage, or selling a coin when the RSI indicator signals overbought.
On top of that, you can use bots built by other traders. Starting with bots is straightforward – you pick a strategy, select the exchange where you hold your funds and you run the strategy.
There are over 26k bots to choose from, and you can use some of these bots for free. This includes the DCA, grid and AI bots. However, to get access to the TradingView bots and get portfolio overview, you need a paid subscription plan.
AI Trading Platform
OctoBot
Type of AI Trading Tools
Various AI bots, including DCA, grid, and AI bots
Supported Assets
Cryptocurrencies
Fees
Free
Minimum Deposit
Varies
Minimum Investment Requirements
Varies
Pros
Selection of pre-built AI robots for automated trading
Trade unlimited bots without any subscription fees
Automate your trading strategies via TradingView
Mobile app
Cons
Portfolio overview and advanced TradingView bots require paid subscription.
We’ve presented the 12 best AI trading platforms for 2024. To ensure our ranking system is impartial and informed, we employed a meticulous methodology. Initially, we shortlisted leading providers to cover the most sought-after AI trading services. This included fully-fledged trading platforms with AI insights, automated portfolio management tools, and quantitative analysis.
We also assessed whether the AI trading platform supported brokerage services directly, or if it needed to be connected to a third-party provider. This methodology provided us with a solid ranking score for each AI trading platform. However, it’s important to remember that you’ll need to do your own due diligence before proceeding. No two AI trading platforms are the same, so assess your own goals and risk tolerance when selecting a provider.
However, the AI trading landscape has only opened to retail clients in recent years. There are many types of AI trading tools in the market. Some offer a fully automated service, meaning the AI robot will trade on your behalf. This is usually via AI-backed software that can be uploaded into a trading platform like MT5. Some AI trading platforms offer portfolio management services. This means that your investment portfolio will be built and maintained by artificial intelligence. Some trading apps will cover other assets like an AI stock trading app or comprehensive AI investing software.
The AI mechanism will make investment decisions based on machine learning, predictive analytics, and natural language processing. It will likely collect data from fundamental and technical sources to ensure it makes informed trading decisions. There are also AI trading tools that can streamline the analysis process. For instance, technical traders can use AI to scan dozens of pricing charts simultaneously. This wouldn’t be possible without the aid of AI.
How Does AI Trading Work?
There are different types of AI trading concepts. The specifics depend on the objectives of the AI software and how it has been programmed.
Let’s explore some of the key fundamentals of using AI for trading.
Automated AI Trading
In many cases, AI trading platforms offer a fully automated service. This means that the AI software will trade autonomously on your behalf. This offers a completely passive way of trading, as the AI robot will buy and sell assets on its own accord.
That said, most AI trading bots are programmed to follow strict conditions. For example, the software might make trading decisions based on the Stochastic Oscillator indicator.
Alternatively, the AI robot could make trading decisions based on fundamental data.
For example, the bot could buy or sell coins after an indicator flashes a signal.
The possibilities are endless when using an AI trading platform that offers automated services. But you’ll need to understand the AI bot’s methodology before proceeding. This ensures that you know why the AI tool picked a specific trade.
Constant Learning and Improvements
The financial markets can change pace at a moment’s notice. This means that AI needs to constantly learn and adapt to new market conditions. Initially, the AI software utilizes historical data to build its foundations. This means analyzing millions of data points across its target market.
In addition, AI works alongside machine learning. This ensures that the AI trading software doesn’t just rely on historical data. Instead, it will evolve with real-time insights and trends, continuously improving its capabilities. For example, machine learning can identify patterns and make assumptions on how the market might react.
Another tool that works alongside AI trading software is natural language processing. This allows AI to extract information from content sources, such as news articles and industry reports. This will then be analyzed and packaged into insights – meaning the AI software can make informed trading decisions.
Types of AI Trading Platforms
AI trading is a broad term that covers many different products and services. To ensure you choose the best AI trading platform for your requirements, let’s explore what the market has to offer.
AI Portfolio Management
If you’re looking to invest in the crypto markets with the assistance of AI, you’ve got plenty of options. The concept is simple; artificial intelligence will select which assets should be added to your portfolio. But the process doesn’t stop there – the AI software will also maintain the portfolio around the clock. This means rebalancing and reweighting the portfolio when needed.
Is Copy Trading the Same as AI Trading?
Copy trading and AI trading both allow you to buy and sell assets passively.
There’s no requirement to analyze the market, so you can sit back and let your money work for you. However, these passive trading tools utilize different methodologies.
AI trading utilizes artificial intelligence (and often machine learning and natural language processing) to make trading decisions. This means that you’re relying on software.
Copy trading allows you to ‘copy’ an experienced trader. There is no AI trading technology involved, as you’ll simply be mirroring the same investments like-for-like.
AI Trading Robots
Some of the best AI trading platforms offer automated robots. These are software files that you can install into a platform. The software is pre-programmed to follow a set of rules and will make trades accordingly. This is usually on an ‘if/then’ basis, meaning the AI robot only trades when a rule has been triggered.
For example:
It utilizes an AI day trading strategy based on the Relative Strength Indicator (RSI).
The ‘if’ rule states that the AI robot should buy a coin if the RSI drops below 32.
If the ‘then’ rule triggers when this condition is met. In turn, the robot will place a buy order on the coin.
AI robots will usually have risk-management rules too. For example, it might always set a trailing stop-loss of 2%. This means that the robot will never lose more than 2% of the position size. It might also set a take-profit target of 4%. This means the robot will close the trade if it increases by 4%.
Where Can I Use an AI Trading Robot?
There are two stages to consider when getting started with AI trading robots.
First, you’ll need to find a robot – or create one.
Second, you’ll need to install it or activate it into a supported trading platform.
AI Signals
There are also AI trading platforms that specialize in signals. This AI tool is similar to robots, as you won’t be required to perform any analysis or research. This is taken care of by the AI signal provider. However, signals provide trading suggestions, meaning you’ll need to place the recommended orders with your broker.
This should include the trade suggestion and the entry, stop-loss, and take-profit prices. Signals can be sent in various ways, including email, SMS, and Telegram. If the signals are related to short-term plays, you’ll need to act on them quickly. This means choosing an AI signals provider that operates in your time zone.
AI Strategy Builders
Some traders use AI to automate their own trading strategies. This means that AI won’t be picking which assets to trade and when. Instead, the AI tool will follow the rules that you teach it.
Crucially, AI builders allow you to create your own strategies, rather than relying on third parties. What’s more, most platforms come with backtesting tools. This means you can assess how your AI strategy would perform in historical market conditions.
The AI tool will suggest refinements to maximize effectiveness. You can then test the AI strategy in simulated market conditions. This means trading in live markets but with virtual capital. Only when you’re comfortable that the AI strategy has been perfected will you trade with real money.
AI Financial Advisors
You can also leverage artificial intelligence as a financial advisor. This means that the AI tool will help you make smart financial decisions based on your goals and appetite for risk. It can also help you build and maintain a suitable portfolio.
AI trading software has a wide variety of features and tools that are used to create automated trading strategies and identify profitable trades. Some common features to look for when choosing an automated trading platform include:
Sentiment Analysis: Sentiment analysis gauges market sentiment by analyzing data from various sources such as news articles, social media, and financial reports. This feature helps traders understand the market mood and make informed decisions.
Portfolio Optimization: AI-driven trading tools help traders balance their investment portfolios, aiming for maximum returns at acceptable risk levels. They can recommend the best mix of assets and provide alerts on when its time to rebalance.
Risk Management: AI trading platforms can identify potential risks and suggest mitigation strategies, such as stop-loss and take-profit levels, asset diversification, and risk scoring. Automatically sets and adjusts based on market conditions.
Predictive Analytics: AI trading platforms use predictive analytics to forecast future market trends and asset prices, aiding traders in making proactive decisions. Examples include time series analysis and scenario analysis. Most platforms use advanced machine learning algorithms to enhance the accuracy of predictions.
Pattern Recognition: AI pattern recognition helps identify trading patterns and trends that are not easily visible to human traders. Patterns include head and shoulders, flags, and triangles. It can also analyze candlestick patterns to predict short-term price changes and spot irregularities or unusual patterns that might signify trading opportunities.
Is AI Trading Profitable?
Whether or not AI trading is profitable will vary widely depending on the type of strategy being deployed. More specifically, AI is only as powerful as the data it has access to. For AI software to make profitable investment decisions, it needs access to accurate, quality, and up-to-date information.
It also requires other emerging technologies to succeed – such as machine learning. This ensures that the AI software constantly evolves with current market conditions and improves its existing data set. If built correctly, AI trading bots can react significantly faster than a human trader. They can also analyze an unprecedented amount of data at any given time.
For example, consider a human trader who’s limited to technical analysis on one currency pair at a time. In contrast, AI could analyze dozens of charts simultaneously. That being said, not all AI trading systems are profitable. Moreover, past performance doesn’t guarantee that the AI system will continue to make money. This makes the backtesting process more important than ever.
How to Use AI Trading Platforms
AI trading software is available for all types of trading assets. Some AI investing software is crypto-specific, but others cover other assets like stocks and options. Let’s look at how AI trading platforms can support different trading needs.
Options Trading
AI trading bots can enhance your options trading by predicting market movements and identifying profitable trades. You can use AI trading software to automate strategies, set stop-loss orders, and manage risk more effectively.
Stock Trading
For stock trading you can use AI trading software to analyze historical data, current market conditions and news sentiments. These platforms can provide real-time recommendations on buy, hold, and sell decisions as well as how to optimize your portfolio allocation. An AI stock trading app can hugely reduce the amount of time spent on manual analysis and help you identify long-term trends and short-term market movements.
Crypto Trading
The volatile nature of cryptocurrencies makes AI particularly valuable. AI trading platforms for crypto continuously monitor market conditions, social media sentiment, and on-chain data to predict price fluctuations. They can execute trades automatically based on predefined criteria, offering strategies like arbitrage, market making, and trend following.
You can also use them for risk management by setting stop-loss orders and limits on your investments. AI trading software allows traders to take advantage of the 24/7 nature of crypto without constant manual intervention.
Day Trading
Similar to crypto trading, AI trading bots come into their own with day trading. They can identify day trading opportunities by analyzing price movements down to the minute. They can analyze vast amounts of real-time data to execute trades quickly and take advantage of price movements. This can protect traders in the fast-paced world of day trading. However, day trading is recommended for experienced traders only.
Are AI Trading Software Safe & Legal?
Put simply, AI trading software is perfectly legal. In fact, in a recent survey of 50 leading hedge funds, 90% stated AI is already being used to meet portfolio objectives. As such, there are no issues with the legality of using AI to make trading decisions.
However, you should strongly consider the risks involved – especially if you’re allowing AI to trade. For example, there is every possibility that the AI software malfunctions mid-trade. This means it could place the wrong trade or misinterpret your instructions.
You should also monitor its performance regularly and make refinements where necessary. And most importantly, ensure that the AI software’s risk management tools are water-tight. At the very least, if the AI software malfunctions, stop-losses will ensure it doesn’t blow through your entire bankroll.
How to Pick an AI Trading Platform
In this section, we explain what to consider when choosing an AI trading platform for you.
Type of AI Trading Service
First, assess the type of AI trading that the platform offers. For instance, if you’re looking to trade passively, you might want an AI portfolio manager or trading robot.
If you’re not comfortable allowing AI to trade with your money, signals could be more suitable. This will enable you to review the AI trading suggestions before placing any orders.
Supported Markets
Most AI trading platforms specialize in a specific market. For example, all of the platforms we reviewed specialize in the crypto market.
AI Trading Strategy
You’ll also need to know the type of strategy the AI trading platform deploys.
For example, some AI’s deploy short-term strategies. This includes scalping and day trading, meaning positions never remain open past standard market hours.
Pricing
You’ll need to ensure that the AI trading platform offers good value for money. If you’re required to purchase or subscribe to an AI system, consider whether you’re able to make a return on the investment.
If your chosen AI trading platform also offers brokerage services, check what fees it charges. This should include account fees, commissions, and spreads.
Past Performance
If you’re opting for an AI trading platform that makes investment decisions, explore its past performance. This is very important, as you’ll want to ensure it has a track record of making profits.
Moreover, its past performance should be over an extended period of time. The longer the AI software has been trading, the more validity it has. You should also ensure that you can verify the results stated by the AI trading platform. If you can’t, there’s no knowing if the data is legitimate.
Brokerage Services
Most AI trading platforms do not offer brokerage services. This means that you’ll need to connect the platform to a compatible broker. Otherwise, the AI software will not be able to access the financial markets.
That said, some providers double up as brokers, making the investment process more convenient.
Conclusion
There’s no denying that artificial intelligence is creating a major sea-change in the investment scene. While AI has been used by hedge funds for many decades, this niche market is finally opening up to casual investors.
We like the Dash2Trade platform for trading crypto with AI. It offers state-of-the-art AI trading bots, plus technical and social media analysis powered by AI. To get started today simply follow the link below.
Pionex is popular for AI trading services. It offers AI strategies, allowing traders to easily buy and sell assets.
Is AI trading profitable?
AI is proving that it has the capacity to outperform human traders. However, not all AI trading systems are profitable, so you’ll need to ensure you backtest a system before deploying it.
Do any AI trading bots really work?
Yes, there are many AI trading bots that have produced consistent profits since their inception. MQL5 lists many AI robots with verified trading results.
Is there any free AI trading software?
Yes, cryptocurrency platforms like Pionex and OKX offer free AI trading software. While the bots are free, you’ll need to cover trading commissions.
How do AI trading apps work?
An AI trading app can leverage artificial intelligence and machine learning to offer investment insights. Some AI apps can even trade on your behalf.
Which AI indicator is best for trading?
Choosing the best AI indicator for trading depends on your specific needs, but some popular indicators are the Relative Strength Index (RSI), Sentiment Analysis, and Bollinger Bands.
How successful is AI trading?
The success of AI trading varies and there is no guaranteed profit. However, AI can help with data-driven decisions and it can eliminate human emotions from the trading process. However, depending on the AI model, it may not be able to account for all factors and new market trends.
Can we use AI to predict stock price?
You can use AI to predict stock price movements. However, they are never 100% accurate. The accuracy depends on the data quality and the models used.
Techopedia’s editorial policy is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise in specialized subjects such as asset valuation and analysis, portfolio management, and financial crime prevention, Kane has built a reputation for providing clear explanations of complex financial topics. He holds a Bachelor's Degree in Finance and a Master's Degree in Financial Crime, and is currently pursuing his Doctorate degree, which focuses on investigating the complexities of money laundering in the cryptocurrency and blockchain technology sectors. Kane's wealth of knowledge and experience in the field make…