A hit rate alone says nothing
“60% of the signals worked” is meaningless on its own. What matters is the net edge: hit rate minus the market's base rate. In a rising market, 60% of randomly chosen stocks also rise. A tool is worth what it adds ON TOP of the base rate.
Position size matters more than entry
The card gives a position-size suggestion, written as a percentage of your capital. The reason is simple: a right entry with the wrong size loses more than a wrong entry with the right size. Sizing down on low-graded setups is easier and more effective than trying to raise your hit rate.
What this product cannot do
- It cannot know where price will go. Nobody can.
- It cannot foresee news and event risk; an earnings surprise, a regulatory change or a macro shock is outside the model's field of view.
- It does not know your risk tolerance. The recommendation is about the state of the setup, not about your situation.
- On very illiquid symbols, the levels it produces may not be executable.