Skip to main content

AI-Powered Stock Rankings

Updated over a month ago

Real-Time Ranking of 1,000+ Stocks

The Core Feature: TradeDots AI App's ranking engine analyzes 1,000+ stocks every minute using a sophisticated 10-factor algorithm, assigning each stock a composite score from 0-100.

Target Users: Day traders and swing traders seeking momentum and volatility opportunities.


The AI Score: 0-100 Composite Ranking

The AI Score is a weighted composite of 10 technical factors that identify stocks with the highest probability of near-term price movement. Higher scores (80-100) indicate stocks with strong technical setups, while lower scores (0-30) suggest weak or bearish conditions.

Update Frequency: Every minute during market hours (real-time)

Universe: 1,000+ US stocks (primarily large and mid-cap with sufficient liquidity)


The 10 Factors (Ranked by Importance)

For a complete technical breakdown of each factor and how they're calculated, see the Algorithm Deep Dive.

Primary Factors (Highest Impact)

1. Price Momentum (20% weight)

  • Measures recent price strength and directional movement

  • Evaluates momentum across multiple timeframes

  • Key for identifying trending stocks

2. Volume Surge (15% weight)

  • Detects elevated trading volume vs historical averages

  • Confirms institutional participation

  • Validates price movements with volume support

3. Relative Strength (12% weight)

  • Compares stock's performance vs market benchmark (SPY)

  • Identifies outperformers with superior strength

  • Critical for finding market leaders

4. Technical Indicator Alignment (12% weight)

  • Multi-indicator trend consensus

  • Combines RSI, MACD, moving averages, and proprietary indicators

  • Measures technical setup quality

5. Volatility (10% weight)

  • Daily price range analysis

  • Provides profit opportunity assessment

  • Important for day traders seeking intraday swings

Secondary Factors (Moderate Impact)

6. Support/Resistance Proximity (7% weight)

  • Distance to key technical levels

  • Identifies optimal entry opportunities

  • Measures breakout potential

7. Pattern Recognition (7% weight)

  • Identifies bullish/bearish chart patterns

  • Detects triangles, flags, head-and-shoulders, etc.

  • Provides structural context

8. Momentum Persistence (7% weight)

  • Multi-timeframe trend consistency

  • Evaluates momentum sustainability

  • Reduces false signals

Tertiary Factors (Lower Impact)

9. Liquidity (5% weight)

  • Trading volume, market cap, and spread efficiency

  • Ensures tradability without slippage

  • Filters out illiquid stocks

10. Recent Breakout (5% weight)

  • Fresh structural breaks with volume confirmation

  • Identifies emerging momentum

  • Captures early-stage moves


Backtested Performance (2022-2024, 750+ Trading Days)

Top Decile (Scores 90-100):

  • Win Rate: 68%

  • Average 5-Day Return: +7.2%

  • Interpretation: Highest-conviction trades with best risk/reward

Top Quintile (Scores 80-100):

  • Win Rate: 64-68%

  • Average 5-Day Return: +5% to +7%

  • Interpretation: Strong opportunities for swing traders

Middle Scores (40-60):

  • Win Rate: 50-52%

  • Average Return: Near zero

  • Interpretation: Avoid - no edge

Bottom Decile (Scores 0-10):

  • Win Rate: 34%

  • Average 5-Day Return: -4.1%

  • Interpretation: Weak stocks - avoid or short candidates


How to Use AI-Powered Rankings

For Day Traders

  1. Focus on top 20 stocks (scores 85-100)

  2. Prioritize volatility factor (Factor 5) - need intraday range

  3. Combine with volume surge (Factor 2) - confirms momentum

  4. Check multiple times daily - rankings update every minute

For Swing Traders

  1. Focus on scores 80+ with strong momentum (Factor 1) and relative strength (Factor 3)

  2. Less concerned with volatility - multi-day holds smooth out intraday noise

  3. Check once daily (morning) - identify multi-day momentum leaders

  4. Hold 3-7 days - let trends develop

Understanding Score Changes

  • Score rising quickly: Momentum building, consider entry

  • Score dropping: Momentum fading, consider exit or avoid

  • Score stable at high level: Sustained strength, good for swing trades

  • Score stable at low level: Weakness persisting, stay away


Real-World Applications

Scenario 1: Day Trading Setup

  • NVDA AI Score: 97/100 (Rank #1)

  • Key Factors: Price Momentum 98, Volume Surge 100, Technical Alignment 100

  • Action: Strong day trading candidate with high volatility and momentum

  • Trade Plan: Enter on pullback, use tight stop, take profits at resistance

Scenario 2: Swing Trade Selection

  • AMD AI Score: 85/100 (Rank #10)

  • Key Factors: Relative Strength 95, Momentum Persistence 100, Pattern Recognition 90

  • Action: Solid swing trade with multi-day momentum

  • Trade Plan: Hold 3-5 days, wider stop, target next resistance level

Scenario 3: Avoiding Weak Stocks

  • XYZ AI Score: 22/100 (Rank #987)

  • Key Factors: Price Momentum 18, Volume Surge 10, Technical Alignment 15

  • Action: Avoid - weak momentum, poor technical setup

  • Alternative: Consider short if pattern confirms or simply pass


Integration with Other Features

AI Rankings + Watchlists:

  • Add top-ranked stocks to your watchlist

  • Monitor them throughout the day

  • Receive breakout alerts when they break key levels

AI Rankings + Pre-Market Scanner:

  • Pre-market movers often top AI Rankings at market open

  • Cross-reference both features for highest-conviction opportunities

  • Best setups = high pre-market volume + high AI score

AI Rankings + AI Chat:

  • Ask AI Chat: "Why does $NVDA have a score of 97?"

  • Get detailed factor-by-factor breakdown

  • Understand what's driving the ranking

AI Rankings + News Snippets:

  • High AI score + positive news = strong confluence

  • High AI score + negative news = proceed with caution

  • Combine technical and fundamental signals


Best Practices

βœ… Do:

  • Focus on top 20-30 stocks (scores 80-100) - quality over quantity

  • Understand which factors are strongest for each stock

  • Combine AI rankings with your technical analysis indicators

  • Check rankings multiple times daily (they update every minute)

  • Use rankings as a starting point, not the final decision

❌ Don't:

  • Trade low-scoring stocks (<60) - no edge

  • Ignore the factor breakdown - understand WHY a stock ranks highly

  • Rely solely on rankings without chart analysis

  • Chase stocks that already moved significantly

  • Expect 100% win rate - even top scores have ~68% win rate


Algorithm Transparency

Unlike black-box systems, TradeDots AI App provides complete transparency:

  • All 10 factors disclosed with descriptions

  • Factor weights published (see list above)

  • Backtesting results shared (68% win rate for top stocks)

  • Full technical explanation available in Algorithm Deep Dive

This transparency allows you to:

  • Understand why stocks rank highly or poorly

  • Validate the algorithm against your own analysis

  • Build conviction in the system

  • Customize your usage based on your trading style


Access & Availability

Required: TradeDots Pro Plan ($129/month)

  • AI-Powered Rankings included

  • Real-time updates every minute

  • Full access to all 1,000+ ranked stocks

  • Factor breakdown for each stock

Not Available: Free Tier, Basic Plan ($79/month)

URL: app.tradedots.ai β†’ Click "AI Signals" or "Heat List" in sidebar


Next Steps

For Algorithm Details: Read Algorithm Deep Dive for complete technical explanation of all 10 factors and calculation methodology.

For Practical Usage: Read Using AI App Effectively for daily workflows, filtering strategies, and real-world examples.

For AI-Assisted Analysis: Use AI Chat Assistant to ask: "Why does [STOCK] have an AI score of X?" and get detailed breakdowns.


Key Insight: AI-Powered Rankings solve the "what should I trade today?" problem by systematically analyzing 1,000+ stocks and presenting the best opportunities ranked by quality. Instead of manually scanning hundreds of charts, you start with the top 20-30 highest-scoring stocks and apply your technical analysis to them - dramatically improving efficiency and focusing your time on the best setups.

Did this answer your question?