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Using AI App Effectively

Updated over a month ago

Practical Workflows for Daily Stock Selection and Trade Preparation

Learning Objectives:

  • Master the morning routine for finding best stocks

  • Navigate AI App dashboard efficiently

  • Filter and sort for your trading style

  • Combine AI App with indicators systematically

  • Execute proven AI App trading strategies

  • Avoid common usage mistakes

Time: 45-60 minutes | Prerequisites: Algorithm Deep Dive recommended but not required | Difficulty: Beginner to Intermediate

Best For: Day traders, swing traders, anyone seeking systematic daily stock selection


Morning Routine: The 15-Minute Workflow

Pre-Market Preparation (8:30-9:15 AM ET)

Goal: Identify 3-5 highest-conviction trades for the day before market opens.

Step 1: Open AI App (2 minutes)

  1. Log in to TradeDots dashboard

  2. Navigate to TradeDots AI App tab

  3. Ensure sorted by Score (descending, highest first)

  4. Review top 20 stocks (scores typically 80-100)

What you're looking for: Stocks with scores e85 (top 5-10%)

Step 2: Quick Scan (3 minutes)

For each stock in top 20:

  • Check score (prefer 90+)

  • Note price and % change

  • See which factors are strongest (hover over score for breakdown)

  • Add 5-10 candidates to watchlist

Quick reject criteria (skip these):

  • Score dropped significantly from yesterday (momentum fading)

  • Gapped up >10% pre-market (chase risk)

  • Low liquidity (ADV <500K, wide spreads)

Step 3: Chart Analysis (8 minutes)

Open TradingView, apply indicators to shortlisted stocks:

For each candidate:

  1. Open daily chart

  2. Apply 2-3 indicators:

    • Buy Sell Signals V2 (always, for zones and Supertrend)

    • +1 confirmation indicator (Smart MACD, Price Momentum Reversal, or Trend Following)

  3. Check for entry setup:

    • Is there buy signal or clear entry point?

    • Is price at demand zone or structural support?

    • Is risk/reward e2:1?

  4. If yes to all 3: Add to "Today's Trades" list with entry, stop, target

Outcome: 3-5 stocks with specific trade plans (entry, stop, target)

Step 4: Set Alerts (2 minutes)

For each planned trade:

  • Set price alert at entry level

  • Set alert if AI Score drops below 70 (exit warning)

Total time: 15 minutes before market open

[DIAGRAM: 15-minute morning routine flowchart]


Navigating the AI App Dashboard

Main Dashboard View

Top Bar:

  • Score column: 0-100 ranking (sort descending)

  • Rank column: #1, #2, #3, etc.

  • Ticker column: Stock symbol, clickable for details

  • Price column: Current price

  • Change % column: Today's % change

  • Volume column: Current volume vs average

Filters (left sidebar):

  • Sector (Technology, Healthcare, Finance, etc.)

  • Market cap (Large >$10B, Mid $2-10B, Small $500M-2B)

  • Price range ($10-50, $50-200, $200+)

  • Score range (e.g., only show scores 85-100)

Sort options (column headers, click to sort):

  • Score (default, highest first)

  • % Change (biggest movers)

  • Volume (highest volume)

  • Alphabetical (by ticker)

Detail View (click any stock):

  • Overall score with percentile rank

  • Breakdown of all 10 factors (each 0-100)

  • Chart with indicators

  • Recent news headlines

  • Link to open in TradingView

[SCREENSHOT: TradeDots AI App dashboard with annotations]


Filtering Strategies

Filter 1: By Trading Style

Day Trading (high volatility, high volume):

  • Minimum score: 85

  • Volatility (Factor 4): e80

  • Volume surge (Factor 2): e85

  • Liquidity (Factor 9): 100 (only most liquid)

  • Result: 3-8 stocks, perfect for intraday

Swing Trading (strong momentum, lower volatility acceptable):

  • Minimum score: 80

  • Price momentum (Factor 1): e85

  • Relative strength (Factor 3): e80

  • Volatility: Any (even 60-70 acceptable for multi-day holds)

  • Result: 10-15 stocks, good 3-7 day holds

Breakout Trading (pattern-based):

  • Minimum score: 75

  • Recent breakout (Factor 10): e80

  • Pattern recognition (Factor 7): e85

  • Volume surge (Factor 2): e80 (confirm breakout)

  • Result: 5-10 stocks with fresh breakouts

Filter 2: By Sector Rotation

When tech is leading (check sector performance on finviz.com):

  • Filter: Technology sector only

  • Sort by relative strength (Factor 3)

  • Trade top 3-5 tech stocks from AI App

When energy is leading:

  • Filter: Energy sector

  • Same process

Why it works: Sector rotation means capital flows into specific sectors. Trading AI App stocks within the leading sector = highest probability.

Filter 3: By Market Conditions

Bull market (SPY uptrend):

  • Focus on stocks with highest scores (90-100)

  • Trade all signal types (strong, weak, reversal, breakout)

  • More aggressive position sizing

Bear market or choppy (SPY downtrend or ranging):

  • Raise minimum score to 90 (only highest conviction)

  • Trade strong signals only, skip weak

  • Smaller position sizing, quicker exits

Why it works: TradeDots AI App identifies momentum, but market environment affects follow-through. Adapt thresholds to conditions.


Combining AI App with Indicators

Combination 1: TradeDots AI App + Buy Sell Signals V2 (Beginner-Friendly)

Process:

  1. AI App: Filter for scores e85

  2. Open each stock in TradingView

  3. Apply Buy Sell Signals V2

  4. Look for:

    • Buy arrow present

    • Green Supertrend (uptrend)

    • Price in demand zone

    • Green bar coloring

  5. If 4/4 confirmations: HIGH-CONVICTION TRADE

Why this combo works: TradeDots AI App narrows to best momentum stocks, Buy Sell Signals V2 provides complete entry system with zones and stops.

Example:

  • NVDA: TradeDots AI App score 94 (rank #3)

  • Buy Sell Signals V2: Buy arrow at $148, green Supertrend, in demand zone $145-148

  • Entry: $148, Stop: $143, Target: $162

  • Outcome: All confirmations aligned, executed

Combination 2: TradeDots AI App + Trend Following (Clear Risk/Reward)

Process:

  1. AI App: Scores e80

  2. Apply Trend Following Buy Sell Signals

  3. Look for Strong buy signals (not weak)

  4. Use provided stop and target levels

  5. Verify AI App factors support trend (check Factor 1: Momentum, Factor 8: Persistence)

Why this combo works: TradeDots AI App identifies momentum leaders, Trend Following classifies signal strength and provides exact entry/stop/target.

Example:

  • TSLA: TradeDots AI App score 88 (rank #8)

  • Trend Following: Strong buy signal, Entry $242, Stop $236, Target $268

  • AI App breakdown: Momentum 95/100, Persistence 100/100 (confirms strong trend)

  • Outcome: Clear trade plan with R:R 3.6:1

Combination 3: TradeDots AI App + Price Reversal Probability (Statistical Edge)

Process:

  1. AI App: Scores e85

  2. Apply Price Reversal Probability + Forecast

  3. Look for probability e70% with HIGH CONF

  4. Confirm AI App factors align (Factor 1: Momentum supporting reversal)

  5. Enter with forecast zone as target

Why this combo works: TradeDots AI App identifies technical setups, Probability indicator quantifies statistical likelihood and provides forecast.

Example:

  • AAPL: TradeDots AI App score 91 (rank #5)

  • Price Reversal Probability: 76% bullish reversal, HIGH CONF, forecast $155-165

  • AI App factors: Strong alignment across all factors

  • Outcome: Statistical validation of AI App ranking


Proven AI App Trading Strategies

Strategy 1: Top 5 Daily (Simple, High Conviction)

Rules:

  1. Trade ONLY stocks ranked #1-5 (scores typically 92-100)

  2. Use any indicator for entry timing

  3. Enter when indicator gives signal

  4. Hold until:

    • Target hit

    • AI Score drops below 70 (warning)

    • Opposite indicator signal

Position sizing: Standard (1-2% risk per trade)

Typical holding period: 1-5 days

Expected results (based on 3-year backtest):

  • Win rate: 68-72%

  • Average return: +6-8% per trade

  • Signals per week: 10-15 (across top 5 stocks)

Pros: Highest quality, simplest to follow Cons: Fewer opportunities (top 5 only)

Example week:

  • Monday: Trade #1 (NVDA, score 97) and #3 (TSLA, score 94)

  • Tuesday: Trade #2 (AAPL, score 95)

  • Wednesday: Trade #1 (new stock, AMD, score 96)

  • Result: 4 trades, 3 winners, 1 small loss = +14% total gain

Strategy 2: Diversified Top 20 (Moderate Risk, More Opportunities)

Rules:

  1. Select 3-5 trades from top 20 stocks (scores 80-100)

  2. Diversify across sectors (max 2 from same sector)

  3. Use indicators for entry/exit timing

  4. Rebalance daily (sell losers, add new high-ranking stocks)

Position sizing: Standard, split across 3-5 positions

Typical holding period: 2-7 days (rebalance as needed)

Expected results:

  • Win rate: 62-66% (slightly lower than Top 5, but more diversified)

  • Average return: +4-6% per trade

  • Signals per week: 20-30 (across top 20)

Pros: Diversification reduces single-stock risk Cons: More trades to manage, slightly lower win rate

Example portfolio:

  • NVDA (Tech, #1, score 97)

  • JPM (Finance, #7, score 89)

  • XOM (Energy, #12, score 86)

  • UNH (Healthcare, #15, score 84)

  • BA (Industrials, #18, score 82)

Result: 5-stock portfolio, diversified, all high-scoring

Strategy 3: Score Threshold with Rotation (Active)

Rules:

  1. Hold all stocks with score e90 (typically 5-10 stocks)

  2. Enter new stocks as they cross 90 threshold

  3. Exit stocks when score drops below 85 (5-point buffer)

  4. Rebalance multiple times per day (AI App updates every minute)

Position sizing: Equal weight across all holdings

Typical holding period: 1-3 days (fast rotation)

Expected results:

  • Win rate: 64-68%

  • Average return: +3-5% per trade (shorter holds)

  • Signals per week: 40-60 (high activity)

Pros: Always in highest-ranked stocks, catches momentum shifts quickly Cons: Very active (requires monitoring), higher transaction costs

Who it's for: Full-time day traders who can monitor positions actively


Real-World Example: Complete Daily Routine

Date: November 18, 2024 (Monday) Trader: Swing trader, $50K account, 3-5 positions target

8:45 AM - Pre-Market AI App Review

Top 10 stocks:

  1. NVDA - Score 97 (Rank #1)

  2. AMD - Score 95 (Rank #2)

  3. TSLA - Score 94 (Rank #3)

  4. AAPL - Score 92 (Rank #4)

  5. MSFT - Score 91 (Rank #5)

  6. META - Score 89 (Rank #6)

  7. NFLX - Score 88 (Rank #7)

  8. GOOGL - Score 87 (Rank #8)

  9. AMZN - Score 86 (Rank #9)

  10. JPM - Score 85 (Rank #10)

8:50 AM - Quick Scan and Filter

  • All top 5 are tech stocks (sector rotation into tech)

  • All have strong momentum (Factor 1: 90-100)

  • All have volume surges (Factor 2: 85-100)

  • Watchlist: NVDA, AMD, TSLA, AAPL, JPM (added JPM for diversification)

9:00 AM - Chart Analysis

NVDA (Score 97, Rank #1):

  • Buy Sell Signals V2: Buy arrow at $148, demand zone $145-148, green Supertrend

  • Trend Following: Strong buy signal, Stop $143, Target $162

  • Decision: TRADE #1 - Enter $148, Risk $5, Reward $14, R:R 2.8:1

AMD (Score 95, Rank #2):

  • Buy Sell Signals V2: Buy arrow at $125, demand zone $122-125

  • Smart MACD: Bullish divergence present

  • Decision: TRADE #2 - Enter $125, Stop $121, Target $138, R:R 3.25:1

TSLA (Score 94, Rank #3):

  • Chart: Already up 8% pre-market (gap up, chase risk)

  • Decision: SKIP (wait for pullback or next day)

AAPL (Score 92, Rank #4):

  • Buy Sell Signals V2: No buy arrow yet, price above demand zone

  • Decision: WATCHLIST (wait for pullback to zone)

JPM (Score 85, Rank #10):

  • Trend Following: Strong buy signal at $152

  • Price Reversal Probability: 72% bullish, forecast $158-166

  • Decision: TRADE #3 - Enter $152, Stop $148, Target $162, R:R 2.5:1

9:10 AM - Final Decisions

Trades for today:

  1. NVDA at $148 (1.6% position, $800 risk)

  2. AMD at $125 (1.6% position, $800 risk)

  3. JPM at $152 (1.6% position, $800 risk)

Total risk: 4.8% of account ($2,400)

9:15 AM - Set Alerts

  • NVDA: Alert if price hits $148 (entry), alert if score drops <80

  • AMD: Alert if price hits $125 (entry), alert if score drops <80

  • JPM: Alert if price hits $152 (entry), alert if score drops <80

  • AAPL: Alert if price pulls back to $145 (demand zone)

9:30 AM - Market Open, Execute Trades

All three trades entered as planned.

Outcome (5 days later):

  • NVDA: Hit target $162, +9.5% gain

  • AMD: Hit target $138, +10.4% gain

  • JPM: Stopped out at $148, -2.6% loss

  • Net: 2 winners, 1 loser, +17.3% total gain on capital deployed


Common Mistakes to Avoid

Mistake #1: Chasing High Scores After Big Moves

Error: Seeing stock at #1 with 98 score after it's already up 15%

Problem: Score is lagging indicator (measures what happened), not predictive after huge move

Fix: Best entries are when stock first enters top 10-20 (score rising), not after it's been #1 for days

Mistake #2: Ignoring Sector Context

Error: Trading top 5 tech stocks when tech sector is underperforming market

Problem: TradeDots AI App measures stock momentum, but sector headwinds can override

Fix: Check sector performance (finviz.com heat map). If sector weak, reduce position size or skip

Mistake #3: Not Using Indicators for Entry Timing

Error: Buying stock immediately because it's #1 on AI App

Problem: High score means good setup, not immediate entry signal

Fix: Always apply indicators for specific entry timing, zones, and risk management

Mistake #4: Holding After Score Drops Significantly

Error: Stock drops from score 95 to 65, but you hold because "it was #1 yesterday"

Problem: Score drop indicates momentum fading, technical factors deteriorating

Fix: Exit or tighten stops when score drops below 75-80 (warning sign)

Mistake #5: Overtrading Low Scores

Error: Trading stocks ranked #50-100 (scores 60-75) for "value"

Problem: These scores indicate mixed signals, lower probability

Fix: Focus on top 20-30 (scores 80+). Quality over quantity.


Key Takeaways

Morning routine is key: 15 minutes pre-market to identify 3-5 best setups

Focus on top 20: Scores 80+ are where edge is (backtested 64-68% win rates)

Filter for your style: Day traders prioritize volatility, swing traders prioritize momentum

Always use indicators: TradeDots AI App finds stocks, indicators time entries

Score drops = warnings: If score falls below 75-80, tighten stops or exit

Diversify sectors: Don't trade 5 tech stocks when tech is weakening

Quality > quantity: Better to trade 3 top-5 stocks than 10 from top 50


Next Steps

Continue to: AI Chat Feature to learn how to use AI for stock analysis and trade ideas.

Or explore: Complete Trading Workflows to see AI App integrated into full trading processes.

Practice: Use the 15-minute morning routine for 2 weeks. Track which strategies work best for your style.


Remember: TradeDots AI App is your starting point, not your entire system. It answers "What should I trade?" by ranking 1,000+ stocks and highlighting the best 10-20. Your indicators answer "When should I enter?" and "Where should I exit?" Use them together systematically: TradeDots AI App for stock selection, indicators for trade execution. This two-step process (selection execution) is how professional traders workand now you can too.

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