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AI Trading Signals - Can You Trust Them?

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

AI trading signals are the latest hype across the retail trading sector, especially among beginners, with DeepSeek and OpenAI the core buzzwords, but how reliable are they? Before considering using AI trading signals, traders should understand that there is no substitute for learning how to trade, as it will allow traders to spot fake signals, inaccurate signal providers, and scams. Read my short overview of AI trading signals and find out what to look for when considering them for your portfolio.

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AI Trading Signals – Overview

Using AI trading signals can provide a fresh market perspective. Regrettably, most AI trading signal providers rely on social trading by analyzing keywords rather than conducting asset-based research like human analysts. AI trading signals are ultra-fast and allow traders to cover entire sectors in fractions of seconds, and traders can consider AI trading signals but approach them cautiously. I recommend ignoring any AI trading signals provider lacking generative pre-trained transformers (GPTs).

5 AI Trading Signals Worth Considering

Below is a quick overview of five AI trading signal providers traders can consider, including their pros and cons. The five AI trading signals providers below offer free trials but no genuine demo that allows in-depth assessment. The minimum cost for a one-year trial using the annual subscription is $96.

I cannot stress enough that traders should never rely on historical data and performance provided by the developer or seller, and they should forward-test each provider to avoid trading losses at best and a complete portfolio loss at worst.

Crypto Trader

Crypto Trader is a crypto-only AI trading signals provider targeting day traders, long-term investors, and beginners. It promises the usage of advanced algorithms to analyze market trends and generates actionable trading signals based on technical indicators like the MACD and RSI.

Pros
Cons
Powered by ChatGPT-4o
No demo offer exists, and the price starts from $10 monthly
Considers fundamental news
Tailored for one sector
Offers risk management suggestions

Crypto Alpha Advisor

Crypto Alpha Advisor is another crypto-only AI trading signals provider focusing primarily on social media trends. It connects to Telegram Alpha groups to source market-relevant information and includes high-risk assets like tokens and airdrops.

Pros
Cons
Powered by ChatGPT-4o
No demo offer exists, and the price starts from $10 monthly
Connects to Telegram groups for real-time updates
Heavily reliant on social media trends and high-risk assets like tokens and airdrops
Includes Dex scanners, Analytics platforms, and IDO calendars

Stock Market Pro

Stock Market Pro covers US equity markets and generates trading signals using the latest quotes, time series data, SMA, EMA, RSI, and MACD indicators. It targets experienced traders, short-term investors, and financial analysts.

Pros
Cons
Powered by ChatGPT-4o
No demo offer exists, and the price starts from $10 monthly
Considers market news (may ignore financial data)
Relies on AI predictions from CoinCodex
Offers customized trading advice

FXAnalytics-ByAI

FXAnalytics-ByAI covers the Forex market, combining real-time financial news, economic events, and technical trading signals. It uses D1 and H1 charts to generate three-day Forex signals. FXAnalytics-ByAI targets Forex traders, financial analysts, and investment firms.

Pros
Cons
Powered by ChatGPT-4o
No demo offer exists, and the price starts from $10 monthly
Uses fundamental economic data during its analysis
Uses multi-day trade setups that incur swap rates and increased trading fees
Supports minor changes in configuration and setup

Gold Market Analyst

Gold Market Analyst covers gold exclusively. It generates trading recommendations after analyzing fundamental developments and conducting technical analysis using RSI, MACD, moving averages, and Fibonacci retracements. It targets individual investors, financial analysts, commodity traders, and hedge funds.

Pros
Cons
Powered by ChatGPT-4o
No demo offer exists, and the price starts from $10 monthly
Analyzes fundamental factors
Limited to one asset
Includes risk management

How to Choose AI Trading Signals

  • Only use AI trading signals that align with your strategy and risk management.
  • Test AI trading signals for at least six to twelve months in a demo or micro account with a small deposit to evaluate their performance.
  • Ignore the marketing hype.
  • Never trust the historic data and always forward-test.
  • Start with a small portfolio and scale up as you build trust in the AI trading signals.
  • Diversify among multiple providers

Using AI Trading Signals - Pros & Cons

The pros of AI Trading Signals

  • Analyzes markets in fractions of a second
  • A fresh market perspective
  • Can combine fundamental and technical analysis
  • Emotionless trading signals

The cons of AI Trading Signals

  • Many AI trading signals are generated by simple technical analysis.
  • High-quantity and low-quality signals
  • Traders must enter trades manually.
  • Lack of adequate risk management.
  • Heavy reliance on social media trends.

Bottom Line

AI trading signals can become valuable trading tools but are no substitute for learning how to trade. Regrettably, right now, most publicly available dedicated AI trading signals are not worth the cost and lack performance consistency. This may change in the future. For the time being, you are better advised to check out the best AI Forex brokers, because most of them offer better AI trading signals.

Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

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