Holly AI Review – Stock scanner goes a level up with Artificial Intelligence
Up until now, when it comes to stock scanners or systems that generate stock market trading ideas, investors had the choice of quite a few services. However, the common bottom line to all the stock scanners until now was that the quality of the stock picks basically relied on the robustness of the trading strategy that was used.
For most retail investors, access to high powered, artificial intelligence powered services was out of reach. It was only the big hedge funds and institutional banks that were able to make use of AI based trading systems.
In recent times, a company called Trade Ideas developed a stock scanning tool that also combined the power of Artificial Intelligence. With the progress being made in Artificial Intelligence these days, it is no wonder that Trade Ideas’ AI based stock scanner has been garnering a lot of attention especially in the retail trading community.
Trade Ideas claim and rightfully so, the early adopters of the AI technology. Interestingly, they call this service the Holy Grail, leading to the service being named as Holly AI or Holly Artificial Intelligence.
According to the website, the Holly AI tests dozens of investment algorithms which are subject to over a million trading scenarios to arrive at a select pick of stocks that offer the highest alpha for the next market session .
While this might sound impossible to the regular average investor, this is nothing but the power of computing and the progress that artificial intelligence can make.
The result of Holly AI’s stock picks is that they are curated and filtered and vigorously tested for both long and short opportunities.
The AI system also takes into account factors such as risk appetite, trade entry, stops and target levels while ensuring that the stock picks delivered for the investor can lead to a higher probability of success.
Taking the stock scanning a step further, Holly AI is also able to learn and adapt to the changing market conditions. This is something that you would not find with the regular stock picking or stock scanning tools.
In short, Holly AI is like a full time trade that can adjust the trading strategies and run the stocks through a series of filters. The only difference being that the stocks are filtered and tested in real time at a much faster speed than an average human.
If this sounds too good to be true, then read on to understand what Holly AI can do and how you can test this service out and improve the success rate of your stock trading strategy.
Holly AI Stock Scanner
How does the Holly AI Stock Scanner work?
The Holly AI stock scanner has over 42 trading strategies. Before the market opens for the day, the stock scanner produces up to 5 strategies from the 42 which seem to work with the highest probability for the day.
The AI stock scanner derives at the list by taking into account the market conditions from the previous day, giving a high probability of how the markets would behave the following day.
Using this method, the Holly AI stock scanner makes use of real time AI and presents you with the top stocks and the entry, stops and target profit levels. Therefore, there is a good chance that the strategy used few days ago would not be the same a few days later when the market conditions change.
According to the creators of Holly AI, Trade Ideas claim that
the system scans through thousands of stock charts and backtests the strategies to derive at the best strategies to be used for the day to generate alpha.
All of this happens in real time and Holly AI stock scanner presents the ideas before the market opens.
Due to the fact that the stock scanning tool uses artificial intelligence, the system constantly adapts to the market in real time and measures the strategies. The system also allows for a feature to adjust the strategies based on the amount of risk you want to take.
With the risk on set up, strategies that coincide with the market’s risk appetite are given preference. At this time, the market is in balance and thus, the risk a trader takes is also increased.
With a risk off set up, strategies that are used for ranging markets are used. This is when the markets are not in balance and it is ideal that the trader also scales back their appetite for risk.
The most interesting part being that all these adjustments happen in real time. Therefore, the Holly AI changes the trade entries and exits in real time as and when the markets turn.
Once the day’s trading session is closed, Holly AI studies all the trades by automatically keeping a log of the trade and assesses the trading strategies and adjusts them depending on how the markets and the trade ideas performed.
The artificial intelligence system constantly learns and adapts to the market with lightning speed and modifies the decisions to avoid mistakes.
It is therefore not surprising to note that the Holly AI system in its first year managed to beat the S&P500 index.
Holly AI and the SPY ETF Index return comparison
In a portfolio of trades based on the virtual analyst and discovery engine, the Holly AI was seen beating the SPDR S&P500 ETF trust. In 2017, during the first half of the year, after accounting for pre-commissions and other costs, the AI stock scanner returned 39%.
This was about five times what the S&P500 had returned during the same period, which was a meagre 8.2 percent gains.
A backtest with $1 million balance, the AI system applied the strategies leading to a 56.2 percent gains and logging a 1.62 percent profit factor.
The AI system was seen executing just over two thousand trades during the period.
How to use the Holly AI stock scanner?
There are many ways you can use the Holly AI scanner. Firstly, this is not a trading system that is a set and forget type of trading. You will need to be closely involved because the AI will change its signals to adapt to the markets.
You can also run your own scanning criteria. For example, you can pick up stocks that have gapped higher or lower on the day. The system will then show you the list of stock trades based on the volume and float and of course the percentage gap that was formed.
To illustrate this point, the Holly AI system scans gapping stocks which has low float and high relative volume. These stock picks tend to have the highest moves. Besides gaps, the Holly AI scanner also has a feature called bounce scanners.
The bounce scanner picks stocks that have been falling for an extended period of time and thus are due for a bounce. There are also other scanning sets such as parabolic and pullback scanners which is suitable for stocks that have extended to the upside and ripe for a quick intraday short.
End of market scans
The end of market scans is ideal when the markets are closed for the day. You can check the stocks that have moved the previous day. This will enable you to see all the movers of the day and the Holly AI then filters the trades and gives you a set of trading signals, ready to go when the market opens the next day.
The end of market scan is also ideal to use for stocks that have had a major news release such as a new acquisition or buyback or earnings release.
The pre-market scan allows you to prepare your trading day. Before the market opens, the pre-market scan looks at the big movers before the market opens. This happens due to early morning news releases.
Institutional positioning allows for the stocks to make some big jumps already before the general market opens. Using the pre-market scan can be a great way to capture volatile price movements in such stocks.
Once your scan is ready, the Holly AI stock scanner will then do its job and presents you with the high probability trading set ups.
You can use the intraday scanner to find set ups during the market session . However, you need to be quick when using this set up as the Holly AI can adjust the trade positions depending on how the markets are evolving.
Thus, you need to be clued in to your computer and be ready to adjust your positions as and when the AI system tells you to.
An important aspect of the Holly AI scanner is that as and when the market conditions start to deteriorate, the number of signals generated are also less. But at the same time, when the market risk appetite is rising, the AI generates signals aggressively giving you more trading opportunities.
Holly AI Stock Scanner – The Advantages
When you use the Holly AI stock scanner, you can see that the system is unstoppable. Unlike human traders, this AI based stock scanner does not get tried or take breaks. Thus, it is constantly working to improve the efficiency of the trades that are generated.
There is also no bias with this AI system, meaning that the stock signals are purely based on logic, the trading strategy that is appropriate for the prevailing market conditions.
The system can adapt to the market conditions in real time. This is something rare with retail traders. Also, the problem with regular stock scanning tools is that traders use their strategy regardless of the market conditions.
Therefore, it is not surprising to know that a strategy that worked yesterday in trending markets will not give the same returns when the markets are flat.
Holly AI Stock Scanner – Limitations
The Holly AI stock scanner is not an auto trader. What this means is that you cannot automatically link to your stock trading account and have the system to trade for you.
Although this revolutionary stock scanner takes the regular stock scanning to the next level, there is still an amount of human touch involved. This means that you will have manually enter the trades yourself.
However, on the plus side, Trade Ideas claims that development has already started which enables the system to auto trade your account.
With AI based systems, there is also the possibility that a software glitch could wreak havoc with the trading signals. So far, the system has managed to work without a glitch.
There is a bit of learning curve involved. Some traders might find it hard to take trading signals generated by a computer. And let’s face it, Holly AI is purely a computer generated AI based stock scanning tool.
However, with some amount of familiarity you are able to adapt to this new way of trading.
What this means is that
since the system adjusts in real time to the changing market conditions, you might have to close down some trades. For the trader, this could create doubts.
In most cases, the Holly AI system gives you profits of up to a few dollars per contract.
Therefore, the real power of taking advantage of the Holly AI stock scanner means that traders need to be well capitalized. If you think that you could use the Holly AI to make money for you while you are undercapitalized, then this system is not for you.
There are also instances when the number of traders can be as high as 20 – 30 trades. Some traders can find it difficult to manage these many trades and could lead to some confusion or slow execution of trades, which could actually result in you getting a bad fill and losing money rather than making money.
Holly AI Scanner – Subscription and pricing
Below are the details of the Holly AI stock scanner’s subscription.
The pricing includes access to both the downloadable application as well as a web based interface. You can pay by credit/debit card or by check or money order.
If you are a professional trader, there is also a pro subscription. Each subscription also includes an exchange fee of $10. This is non-refundable. Therefore, if you purchase the standard monthly subscription for $118 and request a refund, you would be getting back $108.
You can also downgrade from a higher plan to a lower plan. However, the difference is given out as a store credit. The monthly subscription plans do not have the option to downgrade. You will have to cancel your existing subscription to move to a lower plan.
A full refund is given if you cancel your subscription within five days of activating your subscription plan.
There is a free trial for the Holly AI stock scanning tool. You can create a free demo account using your Google or Facebook account. If you register using your email address, then you do not get a free trial.
The free trial comes with delayed data so you would not be able to see the true power of this AI based stock scanning tool.
From time to time, Trade Ideas offers an $8.88 plan where you can sample the premium version for five days.
Holly AI Stock scanner – Summary
In summary, the Holly AI stock scanner is probably the first that opens the door to the future of stock market investing. By removing the human element from trading which keeps emotions out of the picture, Holly AI stock scanner is a truly revolutionary stock scanner.
The system works in real time, which is very different compared to many other stock scanning tools which work only when there is a human interaction. This means that the success or failure of the existing stock scanning tools basically depends upon the trade themselves.
With the Holly AI stock scanner, there is no second guessing and the system continuously evolves, learning from the market. Probably the best part of the Holly AI stock scanning service is that it also learns from its mistakes.
Just like a successful trader would keep a log of their trades and understand what went wrong or what worked, the Holly AI system does just that but at a faster speed.
This brings Holly AI within reach of the average investor, something that has been missing for quite a while.
As a trader, the main goal is to generate alpha, beat the benchmark index. While until this AI based algorithmic trading and stock scanning was only affordable by large firms, Holly AI brings this same technology to the general masses.