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The best stock trading bots for automated trading

JUL 19, 2022
15 MIN

Share trading can be a tricky business, especially when you compete with the world’s most renowned automated day trading bots. This article jots down a list of key industry players, evaluates, and compares various trading software providers.

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AI Trading Software Review Summary

What is a Stock Trading Bot?

Stock trading bot is an automatic trader — a computer program, which can fully or partially replace the broker in stock trading. It sets an algorithm repeating the trader's actions, able to independently monitor necessary indicators and make a decision to make a deal based on one or more conditions.

In a broader sense a trading bot is a system combining program code, computer and trading terminal. Stock trading robots can differ in the following parameters.

  • restrictions on the deposit and trading platforms
  • behavioral strategy
  • the sequence of changes in the settings
  • mechanisms of shorts, stop-losses, take-profits.

What Are The Advantages of Stock Trading Robots?

Most algorithms trade on the derivative markets due to low commissions and high leverage. As a result, there is a huge competition on the futures market, which is growing every year. Algorithmic traders struggle to make money on automated derivative markets — even the most experienced traders. At the same time, the stock market has a large selection of liquid and trending instruments, which bring higher volatility and potentially higher returns in turn. 

But why robots? You might want to use a reliable trading robot to steadily outperform the market: month after month, year after year, instead of several successful deals. Here’s the list of three key advantages stock market bots provide.

  1. Automated exchange trading. There is no need to constantly monitor charts and indicators on your screens.
  2. Strict adherence to a given algorithm. The algorithm is not subject to emotions like panic, it will perform the required sequence of actions no matter what happens around.
  3. Instant reaction to incoming signals. You barely miss a profitable deal because bots are fairly quick, while operating 24/7 with no days off.

The Best Automated Day Trading Bots

Let’s break down some of the best trading bots available on the market and compare key functions they provide. 

MetaTrader 5 (MT5)

Perhaps, the most popular graphical analysis & algorithm trading platforms among professionals. Considering an opportunity of using algorithm trading features of your own design, rented or purchased, MT5 becomes a good pick among other bots.

On top of that, MT4 & MT5 both have a large customer base, making it the biggest algo trading community in the world. The MQL5 forum shows many indicators and robot developers who might want to sell, rent, discuss and help you out with several products.

Many traders claim that MetaTrader 5 makes their CFD trading simple and easy, unlike other complex trading platforms. This is partly because MT5 provides valuable customer-related features like a user-friendly interface and mobile app available for all major platforms. Moreover, users can access trading functionality, technical and fundamental market analysis, copy trading, and automated trading for free to get started. 

However, since MT5 lacks some security features, other institutional platforms have. Nothing serious for your funds, but you should steer clear of scammers trying to compromise your data in any way.

TradeMiner

TradeMiner provides a big dive into historical data for every single stock traded on DJ, S&P500 and NASDAQ 100. Moreover, users can access data related to ETF or separated stock groups. 

You can sort out and filter data to discover which stocks are under or overvalued at the moment, making TraderMiner a great tool to assess your risk/reward ratio and make investment decisions. This feature also embraces futures and forex markets.

Streak

Streak is a trading bot platform founded several years ago. Even though it’s quite new compared to some other software providers, you can benefit by creating trading algorithms on the platform and backtesting them without any coding knowledge whatsoever.

The platform made over $600 million trading turnover and performed around 23 million backtests at the moment. Some best features include a wide range of algorithms, accurate metrics, and combo baskets including Forex, stocks, and crypto.

SwingTradeBot

The best thing about SwingTradeBot is its technical stock screens. Using those, you can easily access multiple patterns, signals, and indicators, increasing your chances of building a successful algo trading strategy. Moreover, the screens boost your research process significantly, resulting in higher returns per hour. 

However, experienced technical traders might lack the screen customization feature. SwingTradeBot targets proactive technical traders looking for a helping hand with scanning, newbies, or users with average experience. 

Algoriz

Algoriz is a trading platform powered by AI technology that provides opportunities to form trading strategies in a simple manner – by typing in the desired action. AI will turn your words into a specific algorithm that can execute a strategy or test it out using a simulated matching engine. Algoriz allows trading crypto as well.

TrendSpider

TrendSpider is a stock analysis software provider focusing on charting, alerts, and testing the strategies created. It targets intraday & swing traders and long-term investors. 

Founded back in 2016, the platform features customizable TA, automatic trendlines, charts, indicators, dynamic price alerts, and a brand new concept called raindrop chart. On top of that, advanced backtesting functionality, pattern & indicator recognition, and immersive analysis features make the platform stand out among other products on the market. You can trade U.S. stocks, Forex, and crypto at the moment.

MetaStock (MS)

MetaStock provides stock market technical analysis and charting services with over 300 TA tools available. You can access end-of-day data using MS D/C and make the most of real-time data with MS R/T. Moreover, the add-on called Xenith allows screening news and fundamentals in real time as well.

The platform focuses on forecasting, charting and accurate backtesting for a wide range of markets, including ETFs, Forex, stocks, and debt markets across the globe. 

VectorVest

VectorVest has an extensive product line to offer — VectorVest 7, VectorVest Mobile, RoboTrader, RealTime Derby, Watchdog and ProTrader 7 are all part of the ecosystem. The platform’s idea is to simplify trading by minimizing risks related to the stock market.

The platform has an advanced dashboard, featuring trading signals to buy, sell, or hold your assets based on multiple criteria like market value, timing and macro background. Newbies and more experienced traders might find VectorVest valuable, while seasoned pros should look somewhere else.

BlackBoxStocks

Founded more than ten years ago, BlackBoxStocks grants access to real-time scanning across stock and option markets. One of the biggest features is that their servers are close to NYSE, NASDAQ, and OTC exchanges — all to avoid signal latency.

Even though BlackBoxStocks do great analyses, that wouldn’t make them unique. Instead, they feature market-average analysis functions complemented by AI and predictive technology for absolutely amazing results. You might expect your bots to tame local volatility and even some mini black swan events, causing larger swings over the short term. 

The platform’s dashboard has built-in alerts in real time, stock scans, popular news & social media feeds, and a fully interactive chart. BlackBoxStocks has a helpful community and a mobile app to make network interaction as smooth as possible. 

TickerTickeron

TickerTickeron uses the quant-sourced marketplace model, providing both investing and trading services. The platform leverages AI and adds human intelligence on top to evaluate the market, build strategies, and execute them afterward. 

The focus group is newbie and middle-tier traders seeking turnkey advisory and portfolio management services. That doesn’t mean experts and crypto advisors can’t benefit from the platform, as they can advise other users via the integrated marketplace. The main drawback is the lack of a user-friendly interface.

Trade Ideas

A cloud-based trading software provider, Trade Ideas, analyzes the stock market to share insights with the community. The company has over a 10 year long story of development, constant improvement and steady results. 

Some recent updates include streaming alerts, trade automation and simulated trading. They continually release improvements and offer one of the best AI stock trading software solutions for retail traders, especially skilled ones. 

The exclusive channel bar feature implies experienced traders can access themed channels to easily view any type of market environment, while newbies can use the idea surfing stock coloring feature to start off easily. If you’re a new to trading, the idea surfing function will showcase you stocks and situations that you would have otherwise not seen. Mousing over to a chart pauses idea surfing to let you investigate the chart further.

StocksToTrade

StockstoTrade is a fully-fledged charting, TA, and stock-scanner platform that has been rolled out several years ago. Even though this option might cost a penny, it provides some deep data insights called Level 2. Moreover, their stock scanner does an amazing job spotting potential breakouts, which is a good feature for technical traders and scalpers. 

What Is Better to Use a Trading Bot for Crypto or for Stocks?

Both crypto and stock trading robots tend to use similar strategies. As a result, it’s not a type of bot which you should focus on to yield higher returns, but the strategy it follows. Crypto & stock trading bots usually stick to one of the following strategies:

A bot’s task is to determine the moment to open a position based on the downtrend or uptrend for long periods of time, and at the upcoming reversal to fix the profit. The opposite process is called anti-trend trading — when a bot buys and sells on corrections and pullbacks.

Scalping 

A short trading session with an emphasis on the maximum price levels, using which the algorithm creates an order with Take Profit and Stop Loss. The duration is around half an hour, the profit from one transaction is small, but it’s multiplied by the significant number of sessions.

This explains the high popularity of this very risky strategy. A robot scalper can "borrow" and earn up to 1,000% in a year. But higher profitability means higher risks.

Gap Trading

The gap or channel strategy is considered flexible. Trading is done within the specific price range. A bot picks up assets on bottom and sells them closer to potential breakouts (highs)

The undoubted advantage is the low risks, in addition, the stop-loss serves as insurance in case of taking over the minimum level. However, bots struggle to automate this strategy fully, as a trader has to set range boundaries manually each time. Half-automated bots can be used, though.

Grid Trading

Grid strategy is based on trading with pending limit orders. The zero point is the current market price from which the orders are set at an equal distance, but in opposite directions. In this case, the bot is quite effective because it takes lots of time to build a grid manually.

Indicator Trading 

This strategy is used when a fundamental analysis can be effectively applied. Trader analyzes the market to set up the strategy based on core indicators like RSI or BB. Even though a trader can give bots a head start, they still lack intelligence and might fail if the market falls into a spin.

FAQs

  • Experienced traders use robots to trade on the exchange during stable periods when selecting the appropriate settings using financial analysis methods is possible. This way, bots can surpass humans in terms of efficiency. When the market is under sharp fluctuations, it wouldn't be a mistake to make decisions independently.

  • Since stock trading is one of the most prominent financial markets, the technologies reached it among the first. Stock trading automation spread across markets right after the 2008 housing bubble, and its popularity only grew over time. As a result, you can easily automate your stock trading with bots.

  • A bot is a special program that automates stock trading and monitors a number of indicators to make trading decisions. The software module analyzes the market situation and executes transactions under the specified trading strategy. An exchange robot follows the algorithm and prevents spontaneous emotional decisions.

  • The efficiency of trading robots is confirmed by practice — up to 80% of transactions are made by robots, they are used by beginners and professionals.

  • Trading bots are not any kind of magic pill that will make you rich instantly, but they can be quite profitable over the long run, especially if you follow some specific rules and act accordingly.

  • Bots have three core benefits, making them profitable: there is no need to relentlessly monitor charts and indicators, they stick to a given algorithm no matter what, they never miss profitable deals if strategy picked is well-analyzed.

Free access for 3 days

Free access for 3 days

Full-access to PRO plan, no credit card required

Full-access to PRO plan, no credit card required