It is often said that emotion is the worst enemy of an investor. Most investors, if not all, can think back to a time when they sold a position too early, missed an opportunity entirely, or held a security too long. Oftentimes, these decisions are made because of emotion.
This emotion could lead you to fear missing an opportunity and lead you to make a poor decision. What if you had a trading assistant that could guide you? An assistant that could give you more confidence as you execute trades?
That is exactly what Pilot Trading is all about. The company created a mobile based AI algorithm that signals buying and selling opportunities. So, does it really work? Here is our full Pilot Trading review.
Pilot Trading is an investing app that helps investors learn about new opportunities. Using AI and psychology based algorithms, Pilot Trading identifies buy and sell opportunities in the market.
With Pilot Trading, investors can monitor stocks, forex, cryptocurrency, and futures.
The service costs $19.95 per month and comes with a number of features that help inform investors. While the tools in the app are simple to interpret, their algorithms are not. The company does not provide much detail about their algorithms.
Pilot Trading does come with a free 14 day trial to help you understand the app and its offerings.
Pilot Trading is a mobile app that is designed to help traders feel more confident in their decisions. The app monitors the market in real time and provides investors with opportunities for stocks, forex (foreign exchanges of currency), futures, and cryptocurrency.
"Pilot is like a super brain that constantly scans the market and learns what other traders are doing and notifies you when prime trading opportunities are taking place on Stocks, Forex, Futures and Crypto on whatever brokerage or exchange you are trading."
The process is a simple idea. Using AI algorithms, Pilot is able to monitor the activity of all traders in real time. They are then able to indicate when a particular security is about to move. Once a move is identified, Pilot notifies you about the opportunity.
Pilot Trading is still relatively new and has not established a long track record. Its mobile app in the app store currently has 20 reviews with an average 4 star rating.
After downloading the app, you can connect it to your brokerage account. It is important to note that Pilot Trading is not a brokerage or dealer. Instead, they are a platform designed to help you make trades. When you connect to your pre-existing brokerage account, you will be able to make trades within the app, but it is only through your actual brokerage account that the trade happens.
Pilot Trading currently has the capability to connect to the following brokerages: AMP Futures, Dorman Trading, GFF Brokers, Interactive Brokers, Phillip Capital, Questrade, R.J. O'Brien, Tradestation, and Wedbush. They can also connect to a variety of cryptocurrency platforms.
Even if your investing brokerage is not able to connect, you can still use the platform. Rather than executing trades within Pilot Trading, you would simply need to exit the app and execute a trade as you normally would.
After downloading the app, you can create your own custom watchlists from over 37,000 securities. From there, you will simply let the app inform you of opportunities.
Using a few signals, Pilot indicates whether or not a security is currently an opportunity to buy or sell. They indicate these opportunities through 4 algorithms that are displayed with 3 tools. First, we will discuss the 4 algorithms.
The four algorithms used by Pilot are the following: Perception, Commitment, Equilibrium, and Sentiment.
Pilot does not release extensive detail about these algorithms or how they were created. Using Pilot Trading to help you make trades will certainly require a trust in their algorithms. Because they do not share much information about them, Pilot instead offers a 14 day free trial to help you understand how they work.
"The main driving force of the markets is the psychology of traders participating in the market. Pilot monitors the activities of market participants and uses advanced artificial intelligence to learn and gather insight into the psychology of traders in real time."
Let's review each of them.
Individual securities are strongly influenced by investor perceptions. Using AI and the psychology of traders, Pilot predicts whether or not the price of an asset will move up or down based upon the current market perception. Furthermore, it predicts how long a price will continue to move.
This algorithm tracks the commitment of investors by analyzing the bid and the ask as well as order cancellations. Commitment monitors the intent of investors.
The Equilibrium algorithm calculates the fair value of a stock and compares that to the current price. The difference between the two indicates the direction of future price movement.
The Sentiment Algorithm does not monitor social media and news to determine price movement, rather it tracks all active traders and categorizes their trading activity into 55 unique groups. This algorithm tracks participation and behavior based on current prices.
When you open the app, you will see your dashboard. Here you will be able to view the total value of your portfolio, daily profit, and the opportunities that Pilot Trading identifies for you.
When you open one of the securities (Pilot Trading calls them instruments) in your watchlist or search for one, you will see a number of tools that indicate the opportunity level. There are 3 tools presented to investors: Signal Strength, Opportunity Gage, and Sentiment Gage. We will review each of them here.
At the top of your screen after selecting an instrument, you will see the Signal Strength indicator. This is 4 dots that represent each of the 4 algorithms. In order from left to right the dots show Perception, Commitment, Equilibrium, and Sentiment.
The dots will either be blue, red, or a light gray. Blue indicates that the corresponding algorithm indicates that the particular instrument is being oversold, which highlights a potential opportunity to buy. Red, on the other hand, illustrates a sell opportunity. The light gray indicates neither a strong opportunity to buy or sell.
In the picture below, you can see that the first, second, and fourth dots are blue. This means that the Perception, Commitment, and Sentiment algorithm are currently indicating an opportunity to buy.
Generally, the more blue dots you see represent the better opportunity to buy, and the more red dots indicate a better opportunity to sell.
Pilot Trading will show an opportunity to buy or sell when the Opportunity Gauge reaches 80%. This means that the market has "reached a perceived overbought/oversold level and that a potential trading setup exists or is developing."
The tools within Pilot Trading can change rapidly, therefore an opportunity may last 5-15 minutes.
The bars in the sentiment graph display various groups of traders that are behaving in certain patterns.
The colors of the bars represent how intense the sentiment for a particular group of traders. Lighter colors represent a more intense and concentrated signal, while darker colors highlight a less intense signal. The center of the graph denotes a shorter trading window, while the further away the color is from the center denotes a longer holding period.
Blue colors represent a buying sentiment, and a red color indicates a selling sentiment.
The tools were designed to be used in tandem, that is, used together to make more informed decisions. When multiple dots appear blue, the opportunity gauge is at 80% or higher, and the sentiment graph shows blue, Pilot Trading is indicating a strong buy opportunity.
Pilot Trading members use the app for two reasons. The first is as an alert system for opportunities in a watchlist. The second is as an execution app that allows members to actually make trades with their connected brokerages.
Pilot Trading comes with a number of features:
Pilot Trading has one price for all features - $19.95 per month. There are no tiers with additional features; you get the entire platform for $19.95 per month.
You can actually download the app and browse through the services, tools, and notifications for free for 14 days. This type of tool certainly requires trust as you will use its recommendations to execute trades. This free 14 day trial is a great way to become comfortable with the app and understand its offerings.
Pilot Trading does not require any account minimums as they are not a brokerage. Your brokerage account may have an account minimum or other trading requirements, but Pilot Trading does not.
Even after research and understanding a particular security, it is common for an investor to doubt their decision to invest. Pilot Trading was built to give investors more confidence in their decisions as well as alert them to new opportunities.
The platform is a mobile based app that acts as both an alert system for new opportunities and as a place to execute trades when connected to a brokerage account.
Pilot Trading is not a brokerage, but instead connects with a number of different investing platforms.
The app is best for active traders looking to make quick trades based on trading signals. It is also a great tool when paired with other charting tools. Since the platform itself does not show any charting or research tools, many investors like to use it with their other forms of research.
One of the main downsides about Pilot Trading is the secrecy of their algorithms. They do not share much information about how they were created or how they work. This certainly can be a point of contention for investors. Pilot Trading seeks to mitigate this with a free 14 day trial to help investors better understand the app and its offerings.
If Pilot Trading seems like a fit for you, be sure to check out their website and review their offerings!