Quick Answers to Common Questions About TradeDots
Learning Objectives:
Find quick answers to common system questions
Understand best practices for TradeDots usage
Troubleshoot common beginner mistakes
Learn optimal indicator and AI App configurations
Get clarity on subscription and technical questions
Time: Reference as needed | Prerequisites: None | Difficulty: All levels
Getting Started
Q: I'm completely new to trading. Can I use TradeDots?
A: Yes, but with a learning curve. TradeDots provides professional-grade tools, but we strongly recommend:
Start with education: Complete the Foundations section (5 chapters) before live trading
Paper trade first: Use TradingView's paper trading feature for 2-4 weeks
Start small: When going live, risk only 0.5-1% per trade (not 2%)
Focus on 1-2 indicators: Don't try to master all 6 premium indicators at once
Recommended path for beginners:
Week 1-2: Read Foundations + Indicators overview
Week 3-4: Paper trade with AI App + Buy Sell Signals V2 only
Week 5-6: Add Smart MACD as second confirmation
Week 7+: Gradually introduce other indicators
Reality check: Most beginners lose money initially. TradeDots gives you better tools, but you still need to develop discipline, patience, and emotional control. Budget 3-6 months to become consistently profitable.
Q: How is TradeDots different from other trading services?
A: Three core differences:
Complete transparency: We publish the exact AI App algorithm (all 10 factors, formulas, weightings). Most competitors hide their "secret sauce" because it's overfitted nonsense.
Education-first approach: This GitBook, free YouTube tutorials, algorithm deep dives. We want you to understand why tools work, not just blindly follow signals.
Statistical validation: TradeDots AI App backtested 3 years (2022-2024), 750+ trading days, published results. We show win rates, Sharpe ratios, drawdownsboth good and bad.
What we're NOT:
Not a "get rich quick" scheme (no promises of guaranteed returns)
Not a "100% win rate" system (70% win rate is realistic and excellent)
Not a signal service where you blindly copy trades
We're a professional toolkit for traders who want to make informed decisions based on data and technical analysis.
Q: What's the minimum account size I need to trade with TradeDots?
A: Realistic minimum: $10,000 for swing trading, $25,000 for day trading (due to PDT rule in US).
Why $10,000 minimum?
2% risk per trade = $200 risk
With typical $5 stop loss = 40 shares
Allows proper position sizing and diversification (5-8 positions)
Below $10,000: You can still use TradeDots, but you'll face challenges:
Smaller account ($5,000): Risk 1% per trade instead of 2%
Very small account ($1,000-2,000): Consider swing trading only, risk 0.5-1%
Under $1,000: Focus on education and paper trading until you build capital
Day Trading Pattern Day Trader (PDT) Rule: In US, day trading requires $25,000 minimum to avoid restrictions (3 day trades per 5 days limit).
Q: Which indicators should I start with?
A: Start with Buy Sell Signals V2 only for your first 2-4 weeks.
Why? It's a complete 5-component system:
Supertrend (trend direction)
Buy/sell signals (entry timing)
Demand/supply zones (support/resistance)
Dynamic trendlines (structure)
Bar coloring (visual confirmation)
After mastering Buy Sell Signals V2, add one confirmation indicator:
For trend trading: Smart MACD
For reversal trading: Price Momentum Reversal
For pattern recognition: Chart Pattern & Market Structure
Advanced (3+ months experience): Add third indicator for multi-confirmation setups.
Do NOT:
Add all 6 indicators to every chart (analysis paralysis)
Switch indicators daily (no time to learn any deeply)
Ignore Buy Sell Signals V2 (it's the foundation)
TradeDots AI App Questions
Q: How often does the AI App update?
A: Every 10 minutes with auto-refresh on the front end during market hours (9:30 AM - 4:00 PM ET).
Why regular updates matter: Momentum can change quickly. A stock ranked #1 at 9:30 AM might drop to #20 by 2:00 PM if momentum fades. Check scores before entering any trade, not just once in the morning.
Q: What's a "good" AI Score?
A: Depends on market conditions and your risk tolerance:
Bull Market (SPY uptrend, VIX <20):
Excellent: 85-100 (trade these aggressively)
Good: 75-84 (acceptable with confirmation)
Moderate: 65-74 (need strong technical setup)
Avoid: <65
Bear Market (SPY downtrend, VIX >30):
Excellent: 90-100 (only trade these)
Good: 85-89 (smaller positions)
Moderate: 75-84 (very selective)
Avoid: <75
Choppy Market (SPY ranging, VIX 20-30):
Excellent: 95-100 (wait for exceptional setups)
Good: 90-94 (selective trading)
Moderate: 80-89 (tight stops, quick scalps)
Avoid: <80 (sit out until trend emerges)
Backtested win rates:
Score 90-100: 68% win rate
Score 80-89: 62% win rate
Score 70-79: 55% win rate
Score <70: 48% win rate
Q: Should I only trade stocks in the top 10?
A: Top 10-20 is ideal, but with context:
Advantages of top 10:
Highest probability setups (scores 85-100)
Best momentum and technical alignment
Easier to achieve 2:1 or 3:1 risk/reward
When to look beyond top 10:
All top 10 in same sector (need diversification)
Top 10 already heavily extended (late to move)
Familiar stock ranked #15-25 with personal expertise
Looking for specific pattern (e.g., reversal setup in stock ranked #18)
Never go below top 50: Stocks ranked below #50 typically have scores <70, which have <50% win rate (losing proposition).
Practical approach: Focus on top 20, shortlist 5-10 based on chart analysis, trade best 2-3 setups.
Q: Can I use AI App for long-term investing?
A: TradeDots AI App is designed for short-term trading (1-7 days), not long-term investing.
Why?
AI App measures momentum (which is mean-reverting over time)
High score today doesn't predict performance 6-12 months out
Optimized for swing trading and day trading timeframes
For long-term investing, use different criteria:
Fundamental analysis (earnings growth, competitive moat, valuation)
Quality metrics (ROE, margins, cash flow)
Business model and industry trends
That said: TradeDots AI App can help you time entries for long-term positions. If you want to invest in NVDA long-term, wait for it to appear in top 10 with score 90+ before entering (better entry timing).
Q: Why isn't my favorite stock on the AI App?
A: There are no minimum criteria on the screener, but volume and price movement patterns and changes will affect whether stocks are ranked.
Common reasons your stock may not appear:
Not in momentum phase:
Stock consolidating or declining
No technical setup present
Low relative strength vs SPY
Sector rotation away:
Your stock's sector is out of favor
Capital flowing to different sectors
Example: Energy weak when Tech strong
Volume and price patterns:
Insufficient trading volume relative to other candidates
Price movement patterns not showing momentum signals
Technical factors not aligning for ranking
What to do:
Don't force trades on favorite stocks
Trade what AI App shows (follow momentum)
Add favorite stock to personal watchlist, wait for it to appear in top rankings
Trust the algorithm over personal preferences
Remember: "Good company" ≠ "good trading setup right now". Apple might be a great company, but if it's consolidating sideways with no momentum, it won't rank highly (and shouldn't be traded short-term).
Q: Can I filter AI App by sector?
A: No such function yet. Coming soon.
Indicator Questions
Q: Which timeframe should I use for each indicator?
A: Depends on trading style:
Day Trading (intraday positions):
Primary chart: 5-minute
Confirmation: 15-minute and 1-hour
Indicators: Buy Sell Signals V2 (5-min), Trend Following (15-min)
Swing Trading (3-7 day holds):
Primary chart: Daily
Confirmation: 4-hour and Weekly
Indicators: All work well on daily chart
Position Trading (1-4 week holds):
Primary chart: Daily and Weekly
Confirmation: Monthly (for long-term trend)
Indicators: Chart Pattern & Market Structure (weekly), Smart MACD (daily)
Multi-timeframe confirmation (highest probability):
Higher timeframe (trend context): Daily or 4H
Intermediate (momentum): 4H or 1H
Lower timeframe (entry timing): 1H or 15-min
General rule: Your holding period should match your analysis timeframe. If you're analyzing the 5-minute chart, don't hold for 3 days. If you're analyzing the daily chart, don't exit after 30 minutes.
Q: How many confirmations do I need before entering a trade?
A: 3 is a reference, but you can have more or less depending on your setup and conviction.
More important than the number of confirmations: Control your position size and risk management.
Fewer confirmations (1-2): Trade with smaller position size (0.5-1% risk)
More confirmations (3-4+): Can use standard position size (1.5-2% risk)
Always honor your stop loss regardless of confirmation count
Remember: Risk management and proper position sizing are more critical than counting confirmations. A well-managed 2-confirmation trade with tight stops can be safer than a poorly-managed 4-confirmation trade.
Q: What if indicators disagree?
A: Do not trade or significantly reduce position size.
Example of conflicting signals:
Buy Sell Signals V2: Buy arrow (bullish)
Smart MACD: Bearish divergence (bearish)
AI App: Score 84 (moderate)
Analysis: 1 bullish, 1 bearish, 1 neutral = No consensus = Skip trade
Options when indicators conflict:
Best option: Skip the trade entirely (wait for clarity)
Alternative: Trade with 50% position size, very tight stop (3% max)
Never: Trade full size with conflicting signals
Why skip?: Conflicting signals = ~50-55% win rate (coin flip). You need edge (60%+ win rate) to be profitable after commissions and slippage. No edge = no trade.
Patience pays: Wait for setups where 3+ indicators agree. These come along regularly if you watch 20-30 stocks on AI App.
Q: Can I use TradeDots indicators on futures, forex, or crypto?
A: Indicators work on all markets, but AI App is stocks only.
Indicators (Universal):
Smart MACD: Works on any market (futures, forex, crypto, commodities)
Price Momentum Reversal: Universal application
Trend Following: Universal, adjust parameters for volatility
Chart Pattern & Market Structure: Universal
Price Reversal Probability: Works best on liquid markets
Buy Sell Signals V2: Universal
AI App (Stocks Only):
Designed specifically for US stocks
Factors like "Relative Strength vs SPY" only apply to stocks
Liquidity and market cap filters are stock-specific
Adjustments for other markets:
Crypto: More volatile, use wider stops (ATR × 1.5 instead of 1.0)
Forex: Lower volatility, tighter stops, focus on Smart MACD
Futures: Respect overnight gaps, use Trend Following signals
Recommendation: TradeDots is optimized for stocks. If you trade other markets, indicators still work but AI App isn't applicable.
Strategy and Risk Management
Q: What's a realistic win rate to expect?
A: 60-70% is realistic and excellent for most traders using TradeDots.
Win rate expectations by setup quality:
Perfect setups (AI App 90+, 3+ confirmations, strong signals): 70-75%
Good setups (AI App 85-89, 2-3 confirmations): 65-70%
Moderate setups (AI App 75-84, 2 confirmations): 60-65%
Weak setups (AI App <75, 1 confirmation): 50-55%
Why 70% is realistic, not 90%:
Markets are probabilistic, not deterministic
Even perfect technical setups fail 25-30% of time (unexpected news, market crashes, stop hunts)
Professional hedge funds target 55-60% win rates (70% is very good)
Important: Win rate alone doesn't determine profitability. A 60% win rate with 3:1 average risk/reward is more profitable than 70% win rate with 1:1 risk/reward.
Formula for profitability:
Copy
Expected Value = (Win Rate × Avg Win) - (Loss Rate × Avg Loss) Example 1: 60% win rate, 3:1 R/R EV = (0.60 × $300) - (0.40 × $100) = $180 - $40 = $140 per trade Example 2: 70% win rate, 1:1 R/R EV = (0.70 × $100) - (0.30 × $100) = $70 - $30 = $40 per trade
Both are profitable, but Example 1 is better despite lower win rate.
Q: How should I position size my trades?
A: Risk 2% of account per trade (standard rule), with adjustments:
Formula:
Copy
Shares = (Account Size × Risk %) / Stop Loss Distance Example: Account: $50,000 Risk: 2% = $1,000 Stop distance: $5 Shares = $1,000 / $5 = 200 shares Entry: $150 × 200 shares = $30,000 position (60% of account) Stop: $145 (if hit, lose $1,000 = 2%)
Risk adjustments by setup quality:
Exceptional setup (AI App 95+, 4 confirmations): 2% risk
Strong setup (AI App 85-94, 3 confirmations): 1.5-2% risk
Moderate setup (AI App 75-84, 2 confirmations): 1% risk
Reversal trades (counter-trend): 1% risk (higher risk category)
Never exceed:
2% risk per trade (maximum)
10% position size (prevents over-concentration)
10-15% total portfolio risk (sum of all positions)
Why 2%?: Allows for long losing streaks without blowing up account. Even 10 losses in a row (unlikely) = -20%, which is recoverable. At 10% risk per trade, 3 losses = -30% (very difficult to recover).
Q: Should I use mental stops or hard stops?
A: Always use hard stops (GTC orders placed immediately after entry).
Why hard stops are superior:
Removes emotion (can't talk yourself out of exiting)
Executes automatically (don't need to watch screen constantly)
Protects against gaps (gets you out if stock gaps down overnight)
Enforces discipline (the only way to consistently honor stops)
Mental stops fail because:
Psychology: "It's only down 2.8%, I'll give it to 3%" then 4% then 5%
Distraction: You step away, stock drops 8% while you're gone
Denial: "It will bounce back" (it doesn't)
How to set hard stops:
Enter trade at $150
Determine stop price: $145 (based on demand zone)
Immediately place GTC (Good-Til-Canceled) stop order at $145
Never move stop wider (only tighten as trade moves in your favor)
Exception: Very wide stops (>10%) on swing trades might benefit from mental stops with alerts, but this requires extreme discipline (most traders fail at this).
Q: How do I manage winning trades?
A: Three management strategies (choose based on setup):
Strategy 1: Fixed Target (Best for range-bound markets)
Set profit target at 2:1 or 3:1 risk/reward
Place limit order at target price
Exit entire position when target hit
Advantage: Simple, eliminates emotion
Disadvantage: Miss bigger moves if trend continues
Strategy 2: Trailing Stop (Best for strong trends)
Start with initial stop below entry
As trade moves in your favor, raise stop every day/hour
Trail stop based on indicator (e.g., below Supertrend line)
Exit when trailing stop hit
Advantage: Captures bigger moves
Disadvantage: Gives back some profit on reversals
Strategy 3: Partial Exits (Best for uncertain conditions)
Exit 50% at 2:1 R/R (lock in profit)
Trail stop on remaining 50% for bigger target
Advantage: Secures profit while keeping upside exposure
Disadvantage: More complex to manage
TradeDots recommendation by indicator:
Trend Following signals: Use trailing stop (Strategy 2)
Reversal signals: Use fixed target (Strategy 1)
Breakout signals: Use partial exits (Strategy 3)
Q: How long should I hold trades?
A: Hold until exit signal, not predetermined time.
Exit triggers (exit if ANY is true):
Target hit (profit goal reached)
Stop hit (risk management)
Indicator reversal signal (thesis broken)
AI Score drops <75 (momentum fading)
Time stop: 10 days for swings, 5 days for day trades (if no progress)
Average holding periods by style:
Day trading: 1-4 hours (close by 3:45 PM)
Swing trading: 3-7 days typical
Position trading: 1-4 weeks
Do NOT:
Exit early due to small profit (greed/fear)
Hold past stop loss (hope)
Set arbitrary time limits ("I always exit on Friday" - bad rule)
Let the market and indicators tell you when to exit, not the calendar.
Technical and Account Questions
Q: Why isn't my indicator showing up on TradingView?
A: There's no need to install anything. You should be able to search our indicators directly on TradingView.
If the indicator is locked (access not granted yet):
Go to your TradeDots Settings page
Link your TradingView username
Access should be granted within a few minutes
Chart timeframe doesn't matter - TradeDots indicators work on all timeframes.
Indicator limits:
TradingView Free: 2 indicators maximum
For more indicators, refer to TradingView plan comparison for information on their paid plans
Still not working? Contact [email protected] for assistance.
Q: Do I need TradingView Pro to use TradeDots?
A: No, TradingView Pro is not required. TradeDots works with TradingView's free account.
With TradingView Free (you can use):
AI App (standalone web app, works without TradingView)
Up to 2 TradeDots indicators simultaneously per chart
Basic charting features
With TradingView paid plans:
5-25 indicators simultaneously (depending on plan tier)
Alerts on indicators (critical for part-time traders)
Multiple chart layouts (save your setups)
No ads
TradeDots recommendation: Start with Free plan. If you find you need more than 2 indicators per chart or want advanced features like alerts, consider upgrading to a paid TradingView plan.
Q: Can I share my TradeDots subscription with family/friends?
A: No, subscriptions are single-user only per Terms of Service.
Why single-user:
Licensing agreements with TradingView
Server load management (AI App updates real-time)
Fair pricing for all users
Each person needs their own subscription, but we offer:
Free trial (7 days) to test before committing
Monthly plans (cancel anytime, no long-term commitment)
Educational content free forever (this GitBook, YouTube)
Sharing violations result in account suspension for all parties.
Q: What happens if I cancel my subscription?
A: Immediate effects after cancellation:
AI App access: Removed immediately
Premium indicators: Continue working until end of billing cycle
GitBook and YouTube: Still accessible (free educational content)
Historical data: Watchlists and past AI App searches deleted after 30 days
Can I re-subscribe later?
Yes, anytime
Watchlists restored if re-subscribe within 30 days
Full access resumes immediately upon payment
No penalties: Cancel and re-subscribe as often as you like. We prefer you use TradeDots when actively trading and cancel when not (transparent business model).
Learning and Improvement
Q: How long until I become profitable?
A: Realistic timeline: 3-6 months for most traders with TradeDots.
Month 1-2 (Learning Phase):
Read Foundations + Indicators sections
Paper trade with AI App + 1-2 indicators
Goal: Understand tools, no pressure on performance
Month 3-4 (Small Live Positions):
Go live with 0.5-1% risk per trade (half normal size)
Trade only AI App top 10, high-conviction setups
Goal: Execute system consistently, manage emotions
Month 5-6 (Full Size):
Increase to 2% risk per trade
Expand to top 20 AI App stocks
Goal: Achieve 60%+ win rate, positive expectancy
Beyond 6 months: Continuous refinement and skill development
Reality check:
30% of traders profitable in first 6 months
60% profitable by 12 months (with discipline and education)
80%+ profitable by 24 months (for those who stick with it)
Success factors:
Education (read this GitBook thoroughly)
Discipline (follow system, don't improvise)
Risk management (never exceed 2% risk)
Emotional control (accept losses, avoid revenge trading)
Patience (don't force trades in poor conditions)
TradeDots provides the tools, but you must develop the skills. There's no shortcut to profitability.
Q: Should I keep a trading journal?
A: Absolutely yes. Trading journal is non-negotiable for consistent profitability.
Minimum journal format (15 minutes per week):
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Date | Stock | Entry | Exit | P/L | Heat Score | Indicators Used | Notes 11/18 | NVDA | $148 | $162 | +$1,400 | 97 | BSV2+TF | Perfect setup 11/19 | AMD | $125 | $122 | -$600 | 95 | BSV2+MACD | Stopped out
What to track:
Every trade (winners AND losers)
Entry and exit prices
AI Score at entry
Indicators used and signals
Risk/reward ratio
Mistakes made
Lessons learned
Weekly review (30 minutes):
Calculate win rate: Wins / Total Trades
Calculate average R:R: (Total $ Won / # Wins) / (Total $ Lost / # Losses)
Identify patterns in mistakes (e.g., "Moved stop 3 times this week")
Set improvement goal for next week
Why it matters: You can't improve what you don't measure. Journal shows patterns you don't see in the moment (overtrading on Mondays, revenge trading after losses, exiting winners too early).
Tools: Google Sheets (free), Edgewonk ($99/year), TraderSync ($49/month)
Q: What books/resources do you recommend to improve?
A: See complete Learning Resources section, but here are top 5:
Books (Must-reads):
"Technical Analysis of the Financial Markets" by John Murphy (comprehensive TA encyclopedia)
"Trading in the Zone" by Mark Douglas (psychology and discipline)
"Market Wizards" by Jack Schwager (interviews with top traders)
"The New Trading for a Living" by Alexander Elder (complete trading system)
"A Random Walk Down Wall Street" by Burton Malkiel (market realism, avoid scams)
Free Resources:
TradeDots GitBook (you're reading it - comprehensive)
TradeDots YouTube channel (indicator tutorials, strategy videos)
Investopedia (definitions and basic concepts)
TradingView Education Center (charting tutorials)
Communities (Learn from others):
r/StockMarket (Reddit, diverse perspectives)
r/SwingTrading (Reddit, swing trading focus)
TradingView Ideas (see how others analyze charts)
Avoid: "Guru" courses promising 90%+ win rates, signal services that don't explain logic, "secret strategies" (if it's secret, it's probably scam).
Subscription and Pricing
Q: How much does TradeDots cost?
A: For current pricing, please visit our pricing page at https://www.tradedots.ai/pricing.
What's included:
Full AI App access (real-time rankings)
All 6 premium TradingView indicators
AI Chat assistant
GitBook educational content
YouTube tutorials
Email support
Free Resources (No subscription required):
This GitBook
YouTube educational videos
Note: Pricing may change, so please refer to the website for the latest information.
7-day free trial available for new users (no credit card required).
Q: Is there a free trial?
A: Yes, 7-day free trial with full access:
What's included in trial:
Complete AI App access
All 6 premium indicators
AI Chat assistant
All educational content
No credit card required for trial signup (requested only if you continue after 7 days).
Trial best practices:
Day 1-2: Read Foundations section, watch YouTube tutorials
Day 3-4: Set up indicators on TradingView, learn AI App
Day 5-7: Paper trade actual setups using system
Day 7: Decide if system fits your style before committing
No pressure: We want you to genuinely understand the system before paying. If it's not a good fit, cancel before day 7 (no charges).
Q: Can I get a refund if TradeDots doesn't work for me?
A: 30-day money-back guarantee on first subscription.
Q: Can I get a refund if TradeDots doesn't work for me?
A: 7-day refund no questions asked on first subscription.
Refund policy:
Full refund within 7 days of initial purchase (no questions asked)
Refund processed within 5-7 business days
Not eligible for refund:
Renewals (only first month/year)
Subscriptions >7 days old
Violations of Terms of Service
Our philosophy: We'd rather refund unhappy customers than keep their money. TradeDots isn't for everyone, and that's okay. If you try it and it doesn't fit your style within the first 7 days, get your money back.
Can't find your answer?
Check other reference sections:
Troubleshooting Guide for technical issues
Glossary for term definitions
Learning Resources for educational content
Search this GitBook: Use Ctrl+F (or Cmd+F on Mac) to search entire documentation
Contact support: [email protected]
Response time: 24-48 hours
Include: Your question, relevant screenshots, what you've already tried
Community: Join TradingView TradeDots community (link in platform) to ask other users
Remember: There are no stupid questions. If you're confused about something, ask. Trading is complex, and TradeDots provides professional-grade tools. Take your time to learn, and don't risk real money until you're confident you understand the system.