Quick Reference for Score Interpretation and Trading Decisions
Purpose: Instant decision-making guide for AI Scores. Print this for trading desk reference.
Score Interpretation by Market Condition
Bull Market (SPY Uptrend, VIX <20)
Score Range
Rank Range
Quality
Action
Position Size
Confidence
90-100
Top 1-2% (#1-20)
Exceptional
Trade aggressively, full conviction
Full (2% risk)
Very High (68% win rate)
85-89
Top 3-5% (#21-50)
Excellent
Trade with high confidence
Full (2% risk)
High (65% win rate)
80-84
Top 6-10% (#51-100)
Very Good
Trade with confirmation
Full to Half (1.5-2%)
High (62% win rate)
75-79
Top 11-15% (#101-150)
Good
Trade selectively, need 3+ confirmations
Half (1% risk)
Medium (58% win rate)
70-74
Top 16-20% (#151-200)
Moderate
High-conviction setups only
Half (1% risk)
Medium (55% win rate)
65-69
Top 21-30% (#201-300)
Below Average
Skip unless exceptional technical setup
Minimal (0.5% risk)
Low (52% win rate)
<65
Bottom 70% (#301+)
Poor
Avoid entirely
Do not trade
Very Low (<50% win rate)
Bull Market Strategy: Focus on 85-100 scores, accept 75-84 with strong indicator confirmations.
Bear Market (SPY Downtrend, VIX >30)
Score Range
Rank Range
Quality
Action
Position Size
Confidence
95-100
Top 0.5-1% (#1-10)
Exceptional
Only scores worth trading
Half (1% risk)
Medium-High (60-65%)
90-94
Top 1-3% (#11-30)
Excellent
Trade with extreme caution
Half (1% risk)
Medium (55-60%)
85-89
Top 3-5% (#31-50)
Very Good
Very selective, perfect setup required
Minimal (0.5% risk)
Medium (50-55%)
80-84
Top 6-10% (#51-100)
Good
Generally skip (choppy in bear market)
Skip or 0.5%
Low (48-52%)
<80
Below top 10% (#101+)
Poor to Moderate
Avoid entirely
Do not trade
Very Low (<45% win rate)
Bear Market Strategy: Raise score threshold to 90-95+, reduce position sizes by 50%, hold more cash (60-70% portfolio).
Choppy Market (SPY Ranging, VIX 20-30)
Score Range
Rank Range
Quality
Action
Position Size
Confidence
95-100
Top 0.5-1% (#1-10)
Exceptional
Trade at range boundaries only
Half (1% risk)
Medium (55-60%)
90-94
Top 1-3% (#11-30)
Excellent
Very tight stops, quick scalps
Half (1% risk)
Medium (52-57%)
85-89
Top 3-5% (#31-50)
Very Good
Consider but be cautious
Minimal (0.5% risk)
Low-Medium (50-55%)
<85
Below top 5% (#51+)
Moderate to Poor
Skip entirely (wait for trend)
Do not trade
Very Low (<48% win rate)
Choppy Market Strategy: Trade infrequently, only top 10-20 stocks, tight stops (3-5%), quick profit targets (5-10%), consider sitting out entirely.
Factor Breakdown Quick Guide
10 Factors Explained (With Weights)
Factor #
Name
Weight
What It Measures
Factor 1
Price Momentum
20%
Rate of price change (5-day + 10-day ROC)
Factor 2
Volume Surge
15%
Current volume vs avg (weighted 20-day/50-day)
Factor 3
Relative Strength
12%
Performance vs SPY (10-day return spread)
Factor 4
Volatility (ATR)
10%
Price volatility as % of price (ATR/Close)
Factor 5
Technical Alignment
12%
5 indicators bullish (RSI, MACD, EMAs, etc.)
Factor 6
Support/Resistance Proximity
8%
Distance to nearest support level
Factor 7
Pattern Recognition
8%
Presence of bullish chart patterns
Factor 8
Momentum Persistence
7%
Consistency across timeframes (1/5/10/20-day ROC)
Factor 9
Liquidity
5%
ADV, market cap, bid-ask spread
Factor 10
Recent Breakout
3%
Fresh breakout with volume
Factor Diagnostic: Why Is My Stock's Score Low?
Use this to understand score drops or why favorite stock isn't ranking:
Check Factor 1 (20% weight): Is stock price momentum slowing? (If ROC declining, score drops significantly)
Check Factor 2 (15% weight): Is volume drying up? (Below-average volume reduces score)
Check Factor 3 (12% weight): Is stock underperforming SPY? (If SPY up 2%, stock flat, negative RS)
Check Factor 5 (12% weight): Are indicators turning bearish? (MACD cross down, RSI overbought = score drops)
Example: NVDA score dropped from 97 78
Likely cause: Factor 1 (momentum slowing), Factor 2 (volume declining), Factor 5 (indicators rolling over)
Action: Exit or tighten stop (thesis deteriorating)
Quick Decision Trees
Pre-Market Routine (5 Minutes)
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Open AI App Sort by Score Check Top 20 For each stock in top 20: � Score e85? � YES Add to watchlist, chart analysis � NO Skip � Watchlist now has 5-10 stocks Open TradingView Analyze watchlist stocks � Apply 2-3 indicators � Check for buy signals � Identify 2-3 best setups � Set alerts for entry zones
During Market Hours (Stock at Entry Zone)
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Alert triggered Check AI Score RIGHT NOW Score still e85? � YES Proceed with entry checklist � 3+ indicator confirmations? YES Enter trade � <3 confirmations? Skip (wait) � NO (score dropped <85) Skip entirely (momentum fading)
Position Management (Daily Check)
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For each open position: Check current AI Score � Score e80? Hold (still strong) � Score 75-79? Warning (tighten stop to breakeven) � Score 70-74? Consider exit (momentum fading) � Score <70? Exit immediately (thesis broken) Also check: � Any indicator reversal signals? If yes, exit � Stop hit? Exit (no exceptions) � Target hit? Take profit
Score Change Alerts and Actions
Score Increasing (Bullish Development)
Change
Timeframe
Meaning
Action
+5-10 points
Intraday
Momentum building
Watch for entry signal if not in position
+10-20 points
Intraday to 1 day
Strong catalyst
Consider adding to position (if holding)
+20+ points
1-2 days
Exceptional move
Don't chase, wait for pullback
Score Decreasing (Bearish Development)
Change
Timeframe
Meaning
Action
-5-10 points
Intraday
Normal fluctuation
Monitor, no action if still >80
-10-15 points
Intraday to 1 day
Momentum slowing
Tighten stop to breakeven if holding
-15-20 points
1 day
Significant weakness
Exit position (thesis deteriorating)
-20+ points
1-2 days
Major breakdown
Exit immediately if still holding
Example:
Entry: NVDA at score 97
Day 3: Score drops to 82 (-15 points)
Action: Tighten stop to entry or exit at breakeven (risk protection)
Top 10 vs Top 20 vs Top 50
When to Use Each Tier
Tier
Score Range
Use Case
Pros
Cons
Top 10
90-100
High-conviction trades, aggressive sizing
Highest win rate (68%), best setups
Fewer opportunities (10-15 daily)
Top 20
85-100
Standard trading, balanced approach
Good win rate (65%), more opportunities
Need confirmation (3+ indicators)
Top 30-50
80-89
Diversification, catching early moves
Earlier entries (before top 10)
Lower win rate (60-62%), more risk
Below 50
<80
Generally avoid
Occasionally find gems
Low win rate (<58%), not worth effort
Portfolio Construction by Experience Level
Beginner (First 3-6 months):
Trade only top 10 (scores 90-100)
Maximum 2-3 positions at once
Full risk per trade: 1% (not 2%)
Intermediate (6-12 months):
Trade top 20 (scores 85-100)
Maximum 5 positions
Full risk per trade: 2%
Advanced (12+ months):
Trade top 30 selectively (scores 80-100)
Maximum 8 positions
Risk varies by score: 2% (90-100), 1.5% (85-89), 1% (80-84)
Factor Weighting Visualization
Understanding the 10-Factor Contribution
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AI Score (0-100) = Sum of (Factor Score × Factor Weight) Factor 1: Price Momentum 20% Factor 2: Volume Surge 15% Factor 5: Technical Alignment 12% Factor 3: Relative Strength 12% Factor 4: Volatility 10% Factor 6: Support/Resistance 8% Factor 7: Pattern Recognition 8% Factor 8: Momentum Persistence 7% Factor 9: Liquidity 5% Factor 10: Recent Breakout 3%
Key Insight: Factors 1, 2, 3, 5 account for 59% of score. If these 4 factors are strong, stock likely ranks top 20.
Sector Filter Strategy
When to Filter by Sector
Use sector filters when:
Top 10 all in same sector (need diversification)
You have expertise in specific sector (e.g., biotech)
Sector rotation analysis (identify leading sector)
Available sectors (sortable in AI App):
Technology (most common in top 10)
Healthcare
Financial
Consumer Cyclical
Consumer Defensive
Energy
Industrials
Basic Materials
Communication Services
Utilities
Real Estate
Sector Rotation Trading
Weekly check (10 minutes):
Run AI App with no filters Note which sector dominates top 10
If 60%+ of top 10 from one sector That sector is leading
Apply sector filter to that sector Trade only top stocks from leading sector
Next week, repeat If new sector leads, rotate capital
Example:
Week 1: Tech 70% of top 10 Trade tech stocks
Week 2: Tech still 60% Continue tech focus
Week 3: Healthcare 50%, Tech 30% Rotation happening, start shifting to healthcare
Week 4: Healthcare 70% Fully rotated to healthcare stocks
Common Mistakes Cheat Sheet
Mistake
Why It Hurts
Quick Fix
Trading stocks ranked #100+
Win rate <55%, wasted effort
Only trade top 20-30 (scores 80+)
Ignoring score drops
Holding deteriorating positions
Check scores daily, exit if <75
Chasing after big score jumps
Entering at tops, poor R:R
Wait for pullback to demand zone
Not adapting to market conditions
Bull market rules don't work in bear
Raise thresholds in bear (90+ only)
Trading low-score stocks you "like"
Emotional override of system
Trust algorithm > personal preferences
Overtrading (too many positions)
Can't monitor all, poor risk management
Max 5-8 positions (prioritize quality)
Daily Workflow Checklist
Pre-Market (8:45-9:25 AM ET)
Check SPY trend (bull/bear/choppy?) Determines score thresholds
Open AI App, sort by score descending
Review top 20 stocks
Filter out stocks in same sector if >60% concentration
Add 5-10 to watchlist (scores 85+ in bull, 90+ in bear)
Chart analysis on watchlist (apply 2-3 indicators)
Identify 2-3 best setups, set entry alerts
During Market (9:30 AM - 4:00 PM ET)
Monitor AI Score changes (quick check every hour)
Execute trades when alerts trigger (verify score still e85)
For open positions: Check scores at 12:00 PM and 3:00 PM
Exit if score drops below 75 (or other exit signal)
Post-Market (4:00-4:15 PM ET)
Log all trades in journal (stock, entry, exit, P/L, Heat score)
Review AI App for tomorrow's watchlist (top 20)
Check if any positions' scores deteriorated (plan exits)
Printing Tips
For Best Use:
Print pages 1-2 (Score Interpretation + Factor Breakdown) on single sheet (front/back)
Laminate or use plastic sleeve
Post near trading monitor for instant reference
Highlight your preferred score thresholds (personal system)
Digital Alternative:
Save PDF to tablet or phone
Quick reference during trading without alt-tabbing
Use Ctrl+F to search specific score ranges
Need More Detail? See complete AI App Algorithm Deep Dive for formulas, backtesting results, and advanced usage strategies.