Can AI Reliably Make Expert Stock Picks?

Artificial intelligence (AI) is showing up in new places all the time. As it becomes improved, more and more businesses and applications are being found for it. Of course, it has already been involved in stock market picks for some time and trade companies are increasingly using it.

Many Investment Companies Using It

You Might Like
Learn more about RevenueStripe...

Many investment companies are already using it. The Coalition, a research company in the U.K., reveals that as much as 45 percent of the money in trades is done with electronic trading. Some are having better success than others. Plenty of other trading and investment companies are either looking into it or are already using it, but the success rate may not yet be what you would hope for. Each one is still hoping to be able to find the perfect AI system to be able to beat the stock market.

Artificial intelligence is clearly still in the developmental stages. Although a lot of progress has been made, it certainly has not yet been perfected to the point of being error-free. Machine learning takes time to learn – like a child – but it must be remembered that there is an incredible number of factors to be considered.

Although a computer certainly thinks much faster than a human and can take into consideration many factors at the same time, there are still limits to what it can do. Some investment companies have certainly been able to increase their profits through the use of AI.

Different Applications

Many of the larger trading companies that have AI use the technology in slightly different ways. One company, Epoque-plus, in Switzerland, uses three different AI systems. Each one of their AI systems is interconnected with the other two. The company uses one for Strategy, one for Orders, and one for Logic – it controls the others and “learns.” The company focuses on Forex, energy, indices, and metals.

Each of the companies that provide stock picks using AI must refer to massive amounts of data to get decent results. An important element is being able to recognize patterns and be able to predict a level of safety in each pick.


When it comes to trading, speed is essential to making a profit. Some companies, such as Greenkey Technologies, have added voice recognition technology to the process to be able to save technicians time when going through various data.

A London-based company, Auquan, allows data science experts of all kinds to be able to provide their techniques to come up with personal investment strategies. This enables clients to take advantage of these strategies without the high prices. This company was named the Hottest Fintech in Europe in 2019.


One company in the U.S. that seems to be doing well (there are others) is Trade Ideas, located in San Diego, CA. “Holly,” the name of their robo advisor, runs through more than one million scenarios to come up with their alpha probability. It only reveals the strategies that have a 2:1 profit factor and a success rate of 60 percent or more.

Whether or not you invest in an investment company that uses an AI robot is entirely up to you. The accuracy of AI trading depends entirely on the data it has to make its predictions. This can make one company’s machine learning algorithms more accurate than another one. With AI development being an ongoing process, it is most likely that all of them may soon be using this technology because to not do so would be to sign their own company’s death warrant. Finding the best one, however, will require watching and experimentation, as well as watching your gains, losses, and fees.

About Mike Valles