The advent of artificial intelligence has spurred numerous debates regarding the future of work and finance, and the world of investing has been at the forefront of AI advancements for the past few years.
With the stock market becoming increasingly automated and efficient, the investment process has followed suit – with AI stock picking services that leverage machine learning to analyze stocks using a variety of categories, such as industry, market capitalization, trading volume, technical indicators, PE ratio, etc.
The stock market is home to thousands of stocks and AI stock pickers can help traders narrow down their search and arrive at a shortlist of a handful of candidates that match their desired criteria.
AI stock pickers differ considerably in terms of their service packages, features and pricing and it can be hard for traders to pick the right one in an increasingly saturated market.
If you are interested in AI stock picking services and would like to know which ones stand out – this Investfox guide is for you.
AI stock pickers are platforms or tools that use artificial intelligence to analyze markets based on a number of factors, such as financial data, market trends to help traders avoid problems in picking stocks daily.
AI stock picker software typically comes with a range of important features, such as:
Danelfin is a fintech platform that uses “explainable AI”, which describes its own work process. Danelfin’s AI assigns a numerical rating from 1 to 10 to individual stocks and breaks down the criteria that is used in its analysis. Each criteria is assigned a numerical value based on the AI’s analysis, which adds up to an average score for the stock.
Users can decide whether to invest in the stock or not, based on the AI’s rating.
As already mentioned, Danelfin uses an AI rating system to assess the risk and potential benefits of investing in a particular stock. Here’s how it works:
For example, Danelfin’s AI rates Apple stock (AAPL) as a 4/10 and suggests investors to hold the stock. While the Fundamentals get a solid 8/10, Technicals and Sentiment lag behind at 5/10 and 6/10, respectively.
Danelfin uses over 600 technical indicators to analyze charts and generate these scores, including the RSI, MACD, market capitalization, revenue growth, net margins, etc.
Aside from the base AI scoring, Danelfin also allows users to view the AI score history for each stock to get an idea of how the stock has fared over a period of time, according to the AI.
Danelfin’ platform covers thousands of stocks and ETFs, while offering additional features in the Plus and Pro payments plans, such as individual alpha signals and unlimited trade ideas.
Danelfin’s website also claims that its picks have returned 158% between January 3, 2017 and December 30, 2022 – as opposed to the 70% returned by the S&P 500 over the same period.
Danelfin offers three different subscription options – Free, Plus, and Pro. The Plus subscription adds more trade ideas, portfolios and overall alphas signals, while the Pro subscription grants access to the full package with unlimited usage.
Candlestick.ai is a mobile-only service that offers both Android and iOS apps to its users. Candlestick provides three stock picks a week via push notifications on the user’s phone.
The AI also explains how it got to the trade idea and only gives out push notifications for stocks that align with the user’s risk tolerance.
Users will have to download the Candlestick.ai app on their Android/iOS devices and tailor their stock picks by their preferences. Candlestick also offers model risk profiles for users to choose from.
Users can choose from over 6,000 stocks available via Candlestick’s app and the platform explains its rationale for each stock pick, assuming the user shows interest in the pick.
The user can ask the AI advisor to provide more information on their stock pick, to which the AI will answer in greater detail to explain their choice.
The AI’s picks have returned 23% in 2022, which is far greater than the 18.11% decline shown by the S&P 500.
Candlestick.ai is a relatively new player on the AI stock picker market and is planning on introducing its conversational AI advisor that will be built on GPT-4 and provide users with earnings analysis and answer various financial questions.
Candlestick.ai operates on a single pricing structure – with $9.99/month for its AI services, which is one of the most affordable offers on the market.
Tickeron’s AI scans markets and looks for trading signals for its users. The platform covers stocks, crypto, and forex. Tickeron offers different strategies based on the risk tolerance of its users. Providing crypto and forex trading signals is what sets Tickeron apart from other AI stock pickers.
Tickeron’s AI searches the markets continuously to find trade ideas and present them to its users, who can choose a strategy based on their risk tolerance and instruct the AI to follow a set of criteria.
Tickeron also offers a host of additional features, such as:
Aside from this, Tickeron also offers the Investors Club, which is a community of Tickeron clients where they can share investment ideas. The Tickeron website also hosts an academy and expert blog for beginners, with plenty of insightful materials.
While signing up for Tickeron is free, its paid subscription will set you back $90/mooth, or $45/month if purchased annually. While not the cheapest offering, Tickeron makes up for its price point by the sheer number of features available on its platform.
AltIndex uses AI to gather data from social networks to provide users with an overview of stocks that are being mentioned most frequently. The AI analyzes engagement on social media posts and the number of mentions of a stock’s ticker or company name to provide users with data that is structured into categories to determine whether the sentiment is positive or negative.
AltIndex assigns an AI score between 0 and 100 to measure social sentiment surrounding a particular stock. The closer the score is to 100, the more positive the discussions around the stock are.
The AI analyzes a large number of data sources, such as social media, traditional news media, job postings, new articles, etc.
AltIndex specializes in U.S stocks, where such data is plentiful and easy to aggregate.
Users can set up alerts that will be sent to their email address once the algorithm finds a suitable stock pick. The number of picks received by users can be inconsistent, with some days having no picks at all.
Prices for an AltIndex subscription are divided into three tiers – Free, Starter ($29/month), Pro ($99/month) and Enterprise, the price of which depends on the number of required alerts and is the most customizable option.
Kavout leverages machine learning and AI to build long-term stock portfolios. Users can choose between two strategies, based on their individual risk tolerance.
Kavout’s offerings are divided into two investment strategies – Kai Equity, and Kai Dynamic Asset Allocation.
Kai Equity is suited for high-risk investors, while Kai Dynamic Asset Allocation is more pragmatic with an 14.2% annual returns, as opposed to 25% for Kai Equity.
Kavout also offers additional features, such as a portfolio builder and tracker, diagnosis and risk assessment tools, as well as a multi-factor stock screener.
Kavout’s portfolio toolbox package costs $49/month, with $7 for the first month. However, Kavout has a $100,000 minimum investment threshold, which may bar some investors from using the service.
Yes. AI stock pickers are pieces of software that use machine learning and artificial intelligence to analyze the stock market and pick the stocks that match the user’s desired criteria. Most Ai stock pickers also come with a wide range of additional features, such as portfolio analysis and rebalancing tools, screeners, model portfolios, etc.
Ai stock pickers often state that their returns are well above the S&P 500. However it must be noted that these returns were generated by the best-performing picks and market-beating returns are not 100% guaranteed.
AI stock pickers go through mountains of data to analyze stocks and assess their rating between Buy, Hold, and Sell.
Some AI stock pickers also offer automated portfolios and advisory services, among others.