TL;DR
Danelfin is an AI-powered stock analysis platform that assigns every stock a score from 1 to 10 based on roughly 900 technical, fundamental, and sentiment indicators processed daily. The company claims its AI-picked portfolios returned around +376% between 2017 and 2025, compared to approximately +166% for the S&P 500 over the same stretch. In our testing, the platform genuinely surfaces interesting trade ideas, but the performance numbers deserve scrutiny. If you want a data-driven second opinion on your stock picks, Danelfin is worth a look. If you expect a magic money printer, keep reading the fine print.
What Is Danelfin?
Danelfin (formerly danelfin.com, rebranded in 2023) is a Barcelona-based fintech that applies explainable AI to equity analysis. Unlike black-box hedge fund algorithms, Danelfin tries to show you why a stock scores high or low.
How the AI Score Works
Every trading day, Danelfin's engine processes over 10,000 features per stock across three pillars:
- Technical indicators -- moving averages, RSI, volume patterns, and about 600 other signals
- Fundamental data -- earnings revisions, valuation multiples, cash flow metrics
- Sentiment signals -- analyst upgrades/downgrades, news flow, social media momentum
The model crunches all of this and outputs a composite score from 1 (weakest) to 10 (strongest). Stocks scoring 8-10 are flagged as the AI's highest-conviction ideas.
Key Features
AI Score (1-10)
The headline feature. Each stock gets a daily-updated overall score plus sub-scores for Technical, Fundamental, and Sentiment. You can quickly see which pillar is driving the rating.
Daily Signals
Danelfin generates buy signals when a stock's score jumps above a threshold. In our testing, we noticed around 15-30 signals per day across US equities, so it is not overly selective.
Portfolio Analysis
Upload your existing portfolio and Danelfin will score every holding. This is surprisingly useful -- it helped us spot a couple of positions where the AI's sentiment sub-score had deteriorated well before the price dropped.
Signal Transparency
Unlike many AI tools that just say "buy this," Danelfin breaks down the contributing indicators. You can see whether the high score comes from a golden cross pattern, improving earnings estimates, or bullish analyst revisions. This transparency is a genuine differentiator.
Pricing
| Plan | Monthly Cost | What You Get |
|---|---|---|
| Free | $0 | Limited stock scores, 3 signals/day, delayed data |
| Premium | ~$20/mo | Full AI scores for 1,000+ US stocks, unlimited signals, portfolio scanner, email alerts |
| Enterprise | Custom | API access, institutional data feeds, custom models |
The free tier is functional enough to evaluate whether the approach resonates with your trading style. Premium pricing sits in the mid-range for AI stock tools -- cheaper than Trade Ideas (~$120/mo) but pricier than basic screeners.
Performance Claims vs. Reality
The +376% Claim
Danelfin's marketing highlights a backtested portfolio of "top-scoring" stocks from January 2017 to late 2025, claiming approximately +376% cumulative return versus roughly +166% for the S&P 500. Let us unpack this:
What is credible:
- The methodology selects the highest-scoring stocks each month and rebalances. This is a straightforward, rules-based approach.
- The AI does appear to have some predictive edge in identifying short-term momentum.
What deserves skepticism:
- Survivorship bias: The backtested universe only includes stocks that still exist today. Companies that went bankrupt or were delisted are excluded, which inflates historical returns.
- Look-ahead risk: The model has been retrained and improved since 2017. The current model did not exist in 2017, so claiming historical returns with today's algorithm is inherently problematic.
- Transaction costs and slippage: The backtest assumes frictionless execution. In reality, trading 20-30 stocks monthly eats into returns via commissions and bid-ask spreads.
- Tax drag: Frequent rebalancing generates short-term capital gains in taxable accounts.
In our view, the real-world edge is likely smaller than the headline number suggests -- perhaps 3-6% annualized alpha after costs, which is still respectable if consistent.
Pros and Cons
Pros:
- Genuinely transparent AI -- you can see which indicators drive each score
- Daily updates across 1,000+ US stocks
- Portfolio analysis tool is practical and easy to use
- Reasonable pricing compared to institutional-grade alternatives
- Educational value -- helps you understand multi-factor analysis
Cons:
- Backtested performance likely overstates real-world returns
- Limited to US equities (no crypto, forex, or international stocks as of early 2026)
- Free tier is quite restricted -- you will hit the signal limit quickly
- No mobile app yet (web-only)
- AI score alone is not sufficient for trade decisions -- you still need your own risk management
Who Is Danelfin For?
Danelfin works for a specific type of investor:
- Swing traders looking for data-driven entry signals on a 1-4 week timeframe
- Self-directed investors who want a quantitative overlay on their existing research process
- Factor-curious retail traders interested in understanding how quant funds think about stocks
It is not a good fit for:
- Day traders who need real-time, sub-minute signals
- Long-term buy-and-hold investors who rebalance once a year
- Anyone expecting guaranteed returns from an AI black box
Danelfin vs. Alternatives
| Feature | Danelfin | Trade Ideas (Holly AI) | Prospero.ai | WarrenAI |
|---|---|---|---|---|
| AI Approach | Multi-factor scoring (1-10) | Pattern recognition + ML | Probability-based signals | Fundamental AI chat |
| Price | ~$20/mo | ~$120/mo | ~$50/mo | ~$30/mo |
| Asset Coverage | US stocks | US stocks + options | US stocks + ETFs | Global equities |
| Transparency | High (shows indicator breakdown) | Medium | Low | Medium |
| Free Tier | Yes (limited) | No | Yes (limited) | Yes (limited) |
| Backtesting | Limited | Built-in | No | No |
| Ideal For | Swing traders, factor analysis | Active day traders | Options probability traders | Research-oriented investors |
FAQ
Is Danelfin's AI score accurate?
The score correlates with short-term performance better than random selection, based on publicly available backtests and our own spot-checking. However, no AI consistently predicts stock movements. Treat the score as one input among many, not a standalone buy/sell signal.
Can I use Danelfin for day trading?
Not really. Scores update once per day, so Danelfin is better suited for swing trading or weekly position adjustments. Day traders need real-time tools like Trade Ideas or TradingView alerts.
Does Danelfin work for international stocks?
As of early 2026, Danelfin primarily covers US-listed equities. They have mentioned plans to expand to European markets, but no firm timeline has been announced.
Is the free plan worth trying?
Yes. The free tier gives you enough access to evaluate whether the AI scoring approach fits your workflow. You will see scores for major stocks and receive a handful of daily signals. Upgrade only if you find yourself wanting more coverage.
How does Danelfin handle market crashes?
During sharp drawdowns, the AI tends to lower scores across the board, effectively raising cash in a rules-based portfolio. In the 2022 bear market, the model reportedly reduced exposure faster than a simple moving-average strategy, though it did not avoid losses entirely.
Verdict
Danelfin occupies an interesting niche: it brings institutional-grade multi-factor analysis to retail investors at a reasonable price, with a transparency level that most competitors lack. The AI score is genuinely useful as a screening tool and a portfolio health-check.
However, the marketing performance claims should be taken with a grain of salt. Backtested returns are not live returns, and the +376% headline number almost certainly overstates what a real-money investor would have achieved.
Our recommendation: Try the free tier first. If the AI's signals align with your own analysis more often than not, the ~$20/month Premium plan is a fair price for a quantitative second opinion. Just do not bet the farm on any single AI score.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance, whether backtested or live, does not guarantee future results. Always do your own research.