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Under the Hood

How AI Trading Works

The technology behind Stockinhood's AI trading tool — full-universe price snapshots, live web search grounding, and plain-English research notes. No black boxes; here's exactly what the AI does.

The AI Trading Pipeline

Step 1: Full-universe price snapshot

A background job continuously refreshes price, % change, volume, and 3-month average volume for 4,600+ US stocks. This is the real-time market data layer — no LLM, no hallucination, just verified numbers.

Step 2: Live web search grounding

When you request an analysis, Gemini runs grounded in real-time web search. It sees today’s news, earnings reports, and analyst commentary — not a frozen training cutoff — so the research reflects current reality.

Step 3: Multi-timeframe targets & confidence

The model generates 7-day, 30-day, 6-month, and 1-year price targets, each with a confidence score and an explicit risk level. You see how strongly the AI believes each target.

Step 4: Plain-English research note

The output is a research note: company overview, bull case, bear case, key catalysts, key risks. It reads like an analyst wrote it — because the AI was prompted to explain its reasoning, not just output a score.

Step 5: Real-time signal scanning

Separate scanners rank the snapshot by momentum, volume surge, and % change, then re-verify top candidates against live Yahoo quotes. This powers the Momentum Radar and top-mover panels.

Why Live Web Search Grounding Matters

Most AI tools are frozen in time — they only know what was in their training data. A model trained in January can't tell you what an earnings report released in March means for a stock. Stockinhood grounds every analysis in real-time web search, so the AI sees:

  • ✓ Today's headlines and breaking news
  • ✓ The most recent earnings reports and guidance
  • ✓ Current analyst commentary and price targets
  • ✓ Real-time price action and volume

The result: research that reflects what's happening now, not what happened months ago.

How AI Trading Works FAQ

This explanation of how AI trading works is for informational and educational purposes only and does not constitute financial, investment, or trading advice. All investing involves risk. Always conduct your own research and consult a licensed financial advisor.

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IMPORTANT DISCLAIMER: Stockinhood is an AI-powered market research tool provided for informational and educational purposes only. Nothing on this platform constitutes financial, investment, legal, or trading advice. AI-generated analysis, signals, research, and briefings do not guarantee future results and should not be relied upon as the sole basis for any investment decision. All investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Stockinhood is not a registered investment adviser, broker-dealer, or financial institution. Always conduct your own independent research and consult a licensed financial advisor before making any investment decisions.

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For informational purposes only. Not financial advice. Invest responsibly.