The exciting niche that falls under the field of automation is trading. Investment in stocks and other crypto assets is always linked with human intelligence, mastery, a keen eye, and know-how to assess market movements with the help of analytical instruments.
However, the recent advancements in AI technology have released a lot of strategies that can be easily automated and digitized. Therefore, building bots for trading purposes started to gain huge traction. According to Markets and Markets, the global market size of bots services is expected to reach $6.7 billion by the year 2027.
There are multiple free and paid trading bots in this modernized and everyday evolving market. However, several come with pre-built settings while others allow for customization.
So, in this write-up, we will discuss trading bots and their development in detail to help you reap the maximum benefits of AI-like intelligent technology.
Role of AI in Stock Trading
AI in stock trading has brought several opportunities to the table, unlike traditional trading. Traders and investors can not leverage computational capabilities to make profitable decisions while mitigating risks. Financial institutions can leverage insights into complex technical opportunities that assist in buying and selling assets in real-time.
Also, they can assess the stock prices in continuity and process huge unstructured datasets.
Best AI Stock Trading Bots
Trade Ideas
Trade Ideas is an AI-backed stock charting bot that helps investors in numerous ways. It enables filtering stocks based on multiple categories such as top popular stocks, usual volume movements, and more. In addition, traders can build customized trading signals and alerts to save time and make profitable decisions.
Moreover, the Trade Ideas bot is mobile-friendly and available for diverse devices. This bot comes with Picture-in-Picture charting helping investors find and understand multiple trends at one time.
TrendSpider
TrendSpider is another AI stock trading bot that provides a more simplified methodology helpful in replacing the trading tools using one single software. Moreover, the hassles of traders gathering resources and accessing several dashboards at the same time are eliminated. Thus, saving time and helping traders make more informed decisions.
Magnifi
Magnifi is an AI-backed bot for stock trading that simplifies for traders and investors to make the most out of investment opportunities. The bot comes with an advanced search engine that eases finding stocks, ETFs, and many more similar assets relevant to search queries performed.
MetaStock
MetaStock is another AI-backed trading bot for traders and investors to determine market opportunities hassle-free aligning with their specific criteria. The bot enables the backtesting of ideas and helps traders modify their strategies for better performance.
Traders are offered more than 150 indicators for efficient comparison of trading opportunities. Also, traders can monitor several aspects such as social sentiments, the latest market updates, and more on the dashboard itself.
AlgoTrader
AlgoTrader is an advanced AI-backed trading bot highly developed for hedge funds and institutional investors. It provides multi-asset support, ensures completely automated trading, and offers custom algorithmic strategies. In addition, the traders can access the latest bot optimization and backtesting tools to ensure optimal performance.
What is the Importance of AI Stock Trading Bot?
AI trading bots utilize machine learning algorithms to perform engaging, data-driven trading. Developing a stock trading bot ensures automation and personalized tactics. Thus, helping in building a competitive edge among the competitors. However, AI stock trading software are dependent on set rules.
Below are discussed the reasons showcasing the significance of having an AI stock trading bot developed.
Pattern Predictions
AI trading bots leverage sentiment analysis to gather linguistics and text and NLP to determine patterns. Altogether, it becomes easy to assess market movements and influence the behavior of investors. Furthermore, incorporating NLP development within the AI bot building makes the pattern predictions more quick and efficient.
Accuracy
Such AI bots are capable of assessing huge datasets and making decisions depending on several criteria. Thus, resulting in improved accuracy and profitable trading.
24/7 Operability
AI stock trading bot lets traders leverage everyday opportunities occurring in the global markets. In addition, they can handle trades as quickly as compared to humans and can respond to changing market movements rapidly.
Robust Risk Management
Artificial Intelligence bots automate the data collection process and help build predictive models leveraging past data. Traders and investors further compile in-depth insights to weigh the chances of expected results, evaluate the investment tactics, and make enhancements accordingly.
Reduced Costs
Traditional investment firms have several analysts, brokers, or advisors helping them in trading. However, AI trading technology is capable of replicating time-consuming and mundane tasks. AI implementation and maintenance may come with expenses. However, it saves money for investors and firms in the long run. Additionally, AI bots continuously work and keep on monitoring the stock market.
Key Features of AI Stock Trading Bot
Intuitive UI
A simplified and intuitive bot design lets users navigate through and control portfolios with ease while obtaining exact trading information. Also, good user experience and user interface contribute to enhanced communication and user satisfaction. Thus, resulting in a stock trading app easily utilized by investors or traders at different stages.
Portfolio Management
Another feature is portfolio management which enables assessing and monitoring multiple assets including ETFs, shares, and digital currencies. Such an engaging feature further allows users to track and handle portfolios.
Algorithmic Trading
The AI bot is capable of executing orders in accordance with established algorithms. It analyzes large datasets at high speed to make decisions.
Real-Time Data Analytics
Integration of bots with data feeds allows users to perform real-time market analysis and assess stock pricing details. Also, the feature enables the bot to recognize huge datasets in a shorter time while helping make trading decisions timely and boosting the likelihood of profitability.
Steps to Develop an AI Trading Bot
The development process includes multiple phases but when executed efficiently, the end product delivered ensures optimal functioning and performance. These steps are:
Define the Trading Methodology
The first and vital step to developing a bot is to decide on the trading strategy. It involves assessing the market scenarios and necessary technical indicators for trade execution. Also, the trading methodology you choose must involve risk management regulations to eliminate any losses.
Upon deciding the strategy, it comes to code implementation. It covers code writing for analyzing market data and exploring trading opportunities. However, make sure the code is well-defined and easily manageable.
Select a Programming Language
The next stage is all about selecting an ideal programming language. For building trading bots, there are numerous languages such as C++, Python, Java, and more. The reason behind utilizing any of these apps is they help scale up your bot in the future if required.
Incorporate With an Exchange API
You need to set up your account with a trading exchange to trade assets. Upon account setup, get the API’s key and secret and sync the bot for exchange purposes. It is ideal for selling currencies, stocks, or cryptos. Make sure the AI integration with exchange is reliable and secure.
Perform Backtesting
Upon proper coding, the next thing you need to do is perform code validation and see if the trading strategy is reaping the benefits. In such a case, backtesting helps in testing the efficiency of trading bots and assessing any concerns associated with trading bots by comparing them to past data.
All in all, having all the necessary answers related to bot concerns is essential and it can be achieved by performing code backtesting.
Choose a Server
The next thing you need to pick a server. It is required to send requests to the exchange API integrated in the previous step. There are several cloud hosting services available like GCS, Azure, and AWS offered by trustworthy AI consulting services providers. Along with the server configuration, you should also meet any software dependency, and perform bot testing for its optimal functionality.
Bot Deployment and Monitoring
Now, your trading bot is ready to deploy on the choice of your cloud platform. Besides, you can leverage real-time tools for continuous bot monitoring. These tools are beneficial in achieving performance insights immediately.
Thus, allowing the traders to track bot activities, receive timely profit alerts, and eliminate the risks of missed opportunities and safety from losses.
Why Choose Orion eSolutions to Build an AI Stock Trading Bot?
An automated trading system performs efficiently only when it is designed for maximum performance. Though you can design AI stock trading bot for free using several available tools but to achieving high profitability and low risks involves, seeking assistance from a reputable AI development company would be the ideal solution. Our team of experienced developers possesses the right tools and skills to build a robust stock market AI trading bot and assist at each development step.
We provide flexibility to the clients when building the best AI stock trading bot that fulfills the specific choices. We enable clients to choose the preferred programming language and tools and customize strategy according to their set trading goals. Moreover, our skilled professionals prioritize security and implement proven practices for privacy and data security adhering to rules and regulations.
Final Thoughts
Building your stock trading AI bot comes with several benefits. For example, your trading activities become more safe, reliable, and efficient. This is due to the automation offered by AI that further eliminates the need for manual execution and limitations associated with it. Moreover, your earnings are maximized if your bot is capable of adapting to the evolving market conditions and leveraging machine learning algorithms.
So, simply follow these basics discussed above, keep a constant focus on continuous learning and adaptation, and execute ongoing optimization of stock trading AI bot. There will be limitless possibilities of maximizing profits.
