FAQs

How good is this, really?

1. Sufficient capital is available for holding concurrent trading positions.
2. Stocks are bought and sold at the next day opening price upon a buy or sell signal. No Buy-Stop Limits or stop losses are used.
3. A zero net gain is counted as a win, although this is rare.
4. The impact of any commission fees has a small negative impact on the profit factor.
5. As in many real-world forecasting scenarios, future stock prices are not known yet traders value predictable performance in their trading accounts. If we assume the above 12 month performance metrics hold in the future we can use a Monte Carlo trading simulation to determine the expected range of future portfolio gains. If we blindly buy and sell upon a signal at the next open with no Buy-Stops or limits we would expect, on average, an annual gain of 25%. (see below)

When do I sell?

Swing trades are designed to last typically from 2 to 20 trading days.  Unlike Buy and Hold strategies you only keep your money working when there is price movement. Assume that some of your capital will NOT always be in play. Therefore, we strive for daily gains in excess of 0.5%, as a gain of 0.5% per day will double your portfolio's value in one year. Sell all or part of your position once you make 3% or more.  If the price is still trending after 3% tighten your sell stop-loss order. Always keep a sell-stop order to protect your initial capital.  Remember that market conditions such as opening price gaps and 'flash crash' events can prevent a sell-stop or stop-limit order from executing. However, the fixed price of sell-stop orders may reduce the risk of selling your stock in the trough of a sudden market dip or flash crash.

What if the buy order is not executed on the day of the order?

The trade signal will usually disappear within one trading day. If the signal does disappear the thesis of imminent price movement has weakened. Any opened buy orders should be carefully monitored as new momentum may be delayed several days. Cancel the order if unfilled after 5 days or more.

What to do with a sell signal?

To keep things simple Stocksaurus is focused in 'Long' or 'Buy' Trade Signals. A Sell Stop price on a 'Sell' Signal is computed when the data shows a pattern that historically leads to a downward trend. Use this price in a 'Stop-Limit' order to protect your positions if you are 'long' (holding) the stock. You may use the same price as a 'Sell Short' price if you are inclined to short stocks. The trade signal will usually disappear within one trading day. If the signal does disappear the thesis of imminent price movement has weakened. Any opened sell stop orders may remain to protect gains. If the stock price allows, you should continue to move the sell stop price higher or use a trailing stop loss order to protect your position.

Why do some signals seem contrary to what the chart shows?

Stocksaurus may find that an artificial intelligence-based strategy produces the best results on backtesting as opposed to using technically based signals. You may even see a buy signal in a strong downtrend. In this case the signal is based on learning an association of a near term price reversal with a complex data pattern that may not be readily apparent in reviewing standard charts and technical metrics.

Why can't I add my own stocks?

Stocksaurus relies on stocks in the S&P500 with a price history of 18 months or more. The S&P500 naturally evolves, removing underperformers and adding rising stars. This ensures that fundamentals and trading volumes are adequate to minimize the risk of significant price gaps at market open. This risk is often due to low-volume stocks or highly inefficient pricing patterns that occur more frequently with smaller companies.

How many 'Buy' signals are listed if I subscribe?

The number of 'Buy' signals in the 'Subscription' tier varies day-to-day but typically range from 3 to 12. Since not all symbols listed move in your favor the additional signals in the 'Subscriber' tier offer more opportunities for profitable trades.

I often see a 'Buy' signal price go down instead of up. Why?

Briefly: Market noise can override even high-probability outcomes.
Stocksaurus identifies statistically favorable trading signals by detecting complex data patterns that are often not obvious from standard charts or traditional technical indicators. These signals are based on learned associations between specific market conditions and the increased likelihood of a near-term price reversal. However, no signal is guaranteed. Short-term volatility and broader market forces can temporarily move a stock in the opposite direction. Importantly, disciplined order execution helps manage this risk. When using a properly placed Buy-Stop-Limit order, you only enter the trade if price confirms movement in your favor. After entry, implementing a protective Stop-Limit order can help manage downside exposure. Because not every symbol will trigger or move favorably after a trigger, diversification and consistent process execution are key. The Subscriber tier provides additional signals, increasing the number of potential opportunities and helping smooth results over time.

Why is the service cost so low?

Stocksaurus is built on scalable cloud infrastructure and integrates trusted third-party charting tools. Through efficient automation and disciplined system design, we maintain high computational performance and reliability while keeping overhead low—allowing us to pass those savings directly to our subscribers. With dozens of trading opportunities each month, the service is priced so that a single winning trade can often cover the monthly subscription cost.

What if I loose access to the 'Subscriber User Watchist'?

Re-register using the same email address you orginally used to register and subscribe.

What is going on behind the scenes to create these watchlists?

Stocksaurus uses signal processing and machine learning along with technical trading know-how to uncover signals for directional trends over a 2-10 day timeframe. Here is our back-end at work: Click here