Best AI Trading Platforms & Software – Compare AI Trading Bots

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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 14 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 14 best AI trading platforms are listed below:

  1. Dash2TradeNew AI trading platform offering trading bots, technical signals, social analytics, and more.
  2. WienerAI: Groundbreaking AI trading bot providing real-time market insights.
  3. Perceptrader AI: Innovative AI-powered solution, boasting advanced features that can maximize trading performance.
  4. Coinrule: Enjoy algorithmic trading without learning a single line of code.
  5. Cryptohopper: Popular crypto trading bots that work on various exchanges, 24/7.
  6. Binance Trading Bots: Create your own trading bots or copy bots from the marketplace.
  7. OKX Trading Bots: A range of pre-built bots used by over 360,000 global traders.
  8. ByBit Trading Bots: Build your bot out of several trading strategies, including grid, martingale and DCA.
  9. Pionex: Trading platform offering AI trading bot, allowing you to trade cryptocurrencies passively.
  10. SMARD: A smartphone-based automated crypto trading bot using a momentum effect algorithm.
  11. Tradesanta: Trading platform with bots, copy trading and trading signals features.
  12. Haasonline: Create and optimize your bots, use crypto signals or create your own strategy, 3-day free trial.
  13. Kryll: Connect multiple exchanges and use the bots directly from the Kryll dashboard.
  14. 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 14 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 Dashboard

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 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
  • No trading fees to use bots

Cons cons

  • Only supports crypto trading

2. WienerAI – Groundbreaking AI Trading Platform, Providing Real-time Market Insights

WienerAI is one of the most sought-after artificial intelligence trading platforms right now. One of the major reasons why the platform is flying high on this list is how it integrates the powers of AI to offer advanced trading services. 

Hosting star-studded AI-powered features, WienerAI is gaining significant attention which has reflected in the performance of its ongoing presale. The platform offers an AI-powered bot that is designed to allow users to automate their trading strategies and net huge returns.

WienerAI bot

Thanks to its AI infrastructure, the trading bot is easy to set up, which makes it appealing to newbies who are not familiar with cryptocurrency trading. 

Likewise, the platform also leverages AI technology to help users identify emerging cryptocurrencies that are capable of soaring massively. After identifying the tokens, the platform will also scout for the best decentralized exchange that offers the cryptocurrency for a cheap price. 

As a leading AI based trading platform, WienerAI also has a research tool that is powered by artificial intelligence to provide users with insightful data and analysis that can guide their investment decisions.

However, despite offering such encompassing AI trading services, the WienerAI platform is free to use, which emphasizes its commitment to ushering in a “prosperous, bold future where Al constantly evolves in order to generate gains.”

AI Trading Platform WienerAI
Type of AI Trading Tools A predictive technology that can scout some of the best cryptos with the highest potential.
Supported Assets Cryptos
Fees Free
Minimum Deposit N/A
Minimum Investment Requirements N/A

Pros pros

  • Beginner-friendly
  • Advanced AI trading tools
  • Free-to-use
  • Swap functionality
  • Real-market insights and accurate trading suggestions

Cons cons

  • It supports crypto trading alone

3. 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. 

Perceptrader AI

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 pros

  • Combines AI and deep learning algorithms to enhance trading performance
  • Beginner-friendly
  • Highly customizable for any trading style
  • Robust risk management

Cons cons

  • It supports limited currencies

4. 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.

Coinrule Homepage

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 lets you explore the marketplace

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.
Minimum Deposit Depends on the cryptocurrency or payment method
Minimum Investment Requirements None

Pros pros

  • High Level Security
  • Customisable Bots
  • Unlimited template strategies
  • Free, limited version

Cons cons

  • High upfront cost

5. 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.

cryptohopper trading bots

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 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 cons

  • Subscription fees may be high if you’re using multiple open positions
  • Depends on the connection with crypto exchanges

6. 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.

Binance bots

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 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 cons

  • There is no guarantee your chosen bot will generate profits
  • Some bots could be hard to build

7. 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.

OKX review

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 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 cons

  • Some third-party bots charge up to 30% in profit-sharing commissions
  • Only supports cryptocurrencies

8. 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.

ByBit trading 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 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 cons

  • Aurora AI recommendations have a short backtested period

9. 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.

Pionex bot review

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 pros

  • One of the best AI trading platforms for cryptocurrencies
  • Several bot strategies to choose from
  • Only pay when the bot trades – 0.05% per slide
  • Almost 380 cryptocurrencies supported
  • No minimum deposit requirement

Cons cons

  • Does not support traditional assets like stocks
  • High margin trading fees

10. 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.

SMARD Auto trading platform

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.

SMARD

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 pros

  • Uses scientifically-backed algorithms.
  • Operates 24/7 with low risk.
  • No upfront payment required.

Cons cons

  • Fees based on profits may be high for successful trades.

11. 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.

Tradesanta

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 pros

  • Build your own bots
  • Copy trading and trading signals
  • Find bots on the marketplace
  • Trade on multiple crypto exchange via a single dashboard
  • Free trial

Cons cons

  • Annual subscription starts from $144

12. 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.

haasonline bots

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
Supported Assets Cryptocurrencies
Fees From $90 if paid annually for the Lite+ package
Minimum Deposit Varies
Minimum Investment Requirements Varies

Pros pros

  • Variety of trading strategies
  • Access your strategies via cloud
  • Free 3-day trial
  • Create your own trading tools with HaasScript

Cons cons

  • Pro package costs $990 if paid annually

13. 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 bots

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.

AI Trading Platform Kryll
Type of AI Trading Tools Pre-built AI bots and a bot creator
Supported Assets Cryptocurrencies
Fees Vary depending on how many $KRL tokens you hold
Minimum Deposit Varies
Minimum Investment Requirements Varies

Pros pros

  • Easy-to-use strategy builder
  • Bots marketplace
  • Supports multiple exchanges
  • Use all features via mobile app

Cons cons

  • Fees depend on how many $KRL tokens you hold

14. OctoBot – Automate Your Trades in TradingView        

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.

octobot

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 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 cons

  • Portfolio overview and advanced TradingView bots require paid subscription.

Our Methodology When Rating AI Trading Platforms

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.

What is AI Trading?

In simple terms, AI trading allows you to trade financial instruments with the assistance of artificial intelligence. AI trading isn’t an entirely new concept. The Economist explains that hedge funds have been using AI for many decades. This includes Bridgewater Associates – the largest hedge fund globally, which has long used AI to develop trading strategies, analyze data, and test theories.

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.

AI robot trading

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.

Interestingly, a recent CNBC article showed that 31% of investors would be comfortable using AI for financial advice.

AI Trading Software Features and Capabilities

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.

cryptohopper candlestick patterns

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.

coinule page

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.

Moreover, we’re already seeing that artificial intelligence can generate false or misleading information. For example, the NY Times recently noted that there are increasing concerns about ChatGPT promoting disinformation. To counter these risks, it’s important that you backtest your AI trading software before letting it loose with real money.

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.

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Kane Pepi
Editor
Kane Pepi
Editor

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…