This Small But Powerful Feature in Trade Ideas’ AI Can Radically Transform Your Intraday Trading

August 7, 2018

This summer, Trade Ideas released our second and third iterations of HOLLY AI (Artificial Intelligence) which now gives us three active AI channels serving statistically significant trade ideas to all subscribers. And the trading results have been nothing short of astounding.

But the feature that gets me most excited needs a little explaining.

Within any AI channel, you can see the current day’s Profit & Loss curve for all trades done by each AI. The chart looks like this:

At the bottom of the graph, you’ll notice “RISK ON” and “RISK OFF”. These are two separate P&L curves that we track for each AI channel. This particular graph above is currently showing you the “RISK OFF” curve which is +$3.85 on a per share basis at the time of this snapshot.

Here’s what each curve represents:

RISK ON: is your P&L curve if you entered every trade that HOLLY entered (same time/price) and you’re still holding all of the trades open with the intention of closing them at the closing print of today’s trading session.

RISK OFF: is your P&L curve if you both entered every trade that HOLLY entered AND exited when she exited (same times/prices).

What gets me most excited about this feature now that we’ve got three AI channels running live is that we now have three times the data points coming in on a real time basis that give us the most accurate depiction of the current trading environment.

An intraday trader, whether taking HOLLY trades or trading their own unique strategy, can quickly browse the P&L curves of the three AI’s to see if it’s a RISK ON or a RISK OFF day. On a day where RISK OFF is outperforming RISK ON (as shown above), that is a pretty strong indicator that today is a choppy market and gains should be quickly taken or aggressively protected (utilizing a tight trailing stop loss, for example). In this environment, profits are fleeting, so you’re best served by being nimble and quick on your feet.

Conversely, when RISK ON is outperforming, this is a clear indication that traders are getting paid to keep risk on. Winning trades are following through and continuing to trend. On days like this if you find yourself tempted to take a quick 50 cent gain off the table, you’d likely be best served to go take a walk, fix yourself a sandwich, go to the gym — anything to get you away from your keyboard because these are the days that 50 cent winners can turn into $4.00 winners!

To me, monitoring these P&L curves to determine when to hold and when to fold my winning intraday trades is one of the simplest yet most powerful applications of the Trade Ideas Artificial Intelligence dataset.

This is Big Data harnessed for you in an easily digest-able way to more effectively, powerfully, and profitably manage your existing trades.

There is power in simplicity.

To try out Trade Ideas HOLLY Artificial Intelligence offerings for a month, head here to start a Premium monthly subscription. Start winning.

~ @chicagosean