What is AI Trading Software

 For the sake of completeness, let’s quickly define AI Trading Software.

AI Trading Software are programs that collect vast amounts of market and alternative data (news, social media, public filing, etc.), automate technical analysis to recommend buy/sell orders, and automate order flow between stock screeners and brokers to eliminate delays in manual execution.

In other words, AI-enhanced trading requires all three platforms. To be really competitive, you need them all or else get crushed by those that do.

There are 4 types:

• Robo Advisory. Robo advisory is an automated investment service provided by most brokers and apps like Acorns to invest your money in low risk securities, in most cases Exchange Traded Funds (ETFs).
• Research. AI-enhanced research is the collection and analysis of textual data from social media, news outlets, public filings, satellite imagery, and other non-financial sources to make buy/sell recommendations, and more broadly overall strategy recommendations.
• Alert Assistance. Alert assistance refers to the ability of AI robots to go beyond manual alerts and actively propose buy/sell opportunities based on a set of global parameters. It’s the difference between asking an intern to take notes and requesting a detailed action plan.
• Alert (aka “Signal”) Execution. Signal execution is an intermediary service powered by artificial intelligence that allows users to connect a screener with alert assistance and a broker that can actually move the money with a stock exchange.

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