Danelfin Review – AI-Powered Stock Picking Service

Danelfin is a stock analysis platform that uses artificial intelligence to rate stocks and identify potential trading opportunities. It covers both US and European stocks and ETFs, plus rates whole market sectors and industries.

According to Danelfin, a portfolio of US stocks created using its AI predictions returned 158%  from 2017 to 2022 compared to 70% for the S&P 500. That’s better than many stock picking newsletters.

So, is Danelfin right for you? Keep reading our Danelfin review to find out everything you need to know about this service.

Danelfin Pricing Options

Danelfin offers three pricing plans: Free, Plus, and Pro.

The Free plan offers 10 stock and ETF reports per month, access to the top 20 ranked stocks, the top two trade ideas based on Danelfin’s AI stock ratings.

The Plus plan costs $25 per month or $204 per year. It offers unlimited reports, access to the platform’s full lists of stock and ETF rankings, and the top 25 trade ideas.

The Pro plan costs $70 per month or $588 per year. It gives you access to all of Danelfin’s trade ideas, trading signals based on fundamental and technical analysis, and the ability to export data.

You can try out the Plus or Pro plan free for 14 days.

Danelfin Features

AI Stock Scores

The main feature that Danelfin offers is AI-powered stock scores. The service rates thousands of US and European stocks on a scale from 1-10, with 10 indicating a strong buy prediction. Ratings are based on 252 market days for US stocks and 500 market days for European stocks. 

Danelfin’s algorithm assigns subscores for a stock’s fundamentals, technicals, sentiment, and risk. In total, Danelfin says it analyzes 600+ technical, 150+ fundamental, and 150+ sentiment indicators for each stock and ETF in its database.

The service doesn’t say exactly what all of these metrics are, but it does provide a surprising amount of transparency about how overall scores are calculated. When you click on a stock, for example, you can see the most important fundamental, technical, and sentiment indicators that were ranked in the AI’s analysis. There are usually 20-40 of these, and Danelfin displays the current value, ranking (on a 1-10 scale), signal importance, and calculated odds to beat the market for each of them.

That’s an impressive amount of transparency for an AI stock ranking platform. Most of Danelfin’s competitors, like Tykr and Stocklabs, don’t provide much detail about how algorithmic stock scores are determined.

Another thing that’s nice about Danelfin is it actually keeps track of how well its AI algorithm performs for each stock and ETF. On any stock page, you can see a price chart annotated with all buy signals (that is, days when the AI score reached 7 or higher). A table shows the average performance of these signals 1, 3, 6, and 12 months later. You can even dig in to look at every single buy signal and how it turned out.

This is a big deal for algorithmic stock investing. Being able to really dive into past results gives you more confidence in the algorithm. It also lets you see, for any individual stock you’re thinking of buying based on Danelfin’s recommendations, how well the algorithm has performed for that stock in the past.

Top Stocks and ETFs

Danelfin uses its AI scores to create lists of the top-rated stocks and ETFs daily. These lists are pretty helpful for generating trade ideas. One thing that’s really nice is you can filter the lists to only show stocks that have a win rate of at least 60% from past buy signals (or 70% for sell signals).

Beyond that, there aren’t a lot of filtering options for stocks—you can filter by country, but that’s about it. Danelfin doesn’t have anything approaching a stock screener, which is one of the biggest shortfalls of the platform. You can sort the ETF list by region, benchmark index, theme, asset class, and strategy.

Danelfin also calculates scores for market sectors and industries. These are based on the average scores of each of the stocks in that sector or industry. This isn’t a groundbreaking feature, but it’s nice that Danelfin aggregates its stock scores in this way.

Trade Ideas

Danelfin’s trade ideas list is similar to the top stocks list, but with a few additional filters applied. It only covers US stocks with a market cap of $500 million, and stocks in the list have at least a 60% win rate from past signals (70% for sell signals).

You can choose one, three, or six-month trade timeframes. The table shows the win rate and average return for each stock over that timeframe. 

Customization and Layout

Danelfin allows you to create portfolios, which makes it easy to monitor scores for stocks you own or want to watch. You can receive email alerts when the scores of stocks in your watchlist are upgraded or downgraded.

Other than that, there isn’t much about Danelfin that’s customizable. The platform is pretty streamlined and doesn’t try to throw in a kitchen sink of extra features.

Danelfin Platform Differentiators

Danelfin is far from the only platform to use AI to rank or score stocks. Tykr, Stocklabs, Simply Wall St, and Seeking Alpha all do this, to name a few competitors.

What makes Danelfin different is the degree of transparency it offers into how its scores are calculated. You can see the most important variables that contributed to a stock’s score and see how the overall score breaks down into fundamental, technical, sentiment, and risk subscores.

On top of that, Danelfin treats its scores as signals and tracks their performance. You can look back at how buy signals have performed for each stock over multiple timeframes. This provides a lot more confidence in Danelfin compared to other services, many of which require you to blindly trust that an AI-powered buy signal will work out in your favor.

What Type of Trader is Danelfin Best For?

Danelfin offers trade ideas over one, three, and six-month timeframes, so it’s best for swing traders and active investors. You can use the platform’s AI scores on their own, but you should feel comfortable doing your own technical or fundamental analysis to decide what signals to act on.

Danelfin can be very useful for generating investment ideas. It’s worth considering as an alternative to (or in addition to) a stock picking service like Motley Fool Stock Advisor or Seeking Alpha.