They cut through the noise and reveal high-probability trade setups. That’s where TradingExpert Pro’s AI-based expert ratings come in. With over 400 built-in rule sets, this proprietary system assigns a bullish or bearish score to each stock, ranging from +100 (strong buy) to -100 (strong sell).
These scores are generated from technical rules developed by top traders and analysts, analyzing indicators like RSI, MACD, stochastic, volume, momentum, and dozens more. The AI scans every stock nightly, summarizing complex conditions into one clear rating. Traders use these scores to validate their setups, spot new opportunities, and avoid false breakouts.
In short, it’s a technical signal aggregator that saves time, reduces bias, and adds discipline — everything a serious trader wants.
WinWay’s Expert Rating signals are designed to anticipate changes in the direction of price movement. Some are accurate, while others are not. However, more often than not, the Expert Rating signals are accurate. Of the accurate signals, some are received early, some are received late, and some are accepted at the perfect time. Since traders cannot predict next week’s market prices, they must decide whether to make a trade or to stand aside based on the information available.
In order to help the prudent trader increase the number of profitable trades, WinWay TradingExpert Pro provides a wide array of information that can be used for signal validation. The process of using other information to validate signals is called signal confirmation. Signal confirmation is accomplished in a variety of ways. Inherent in each method is a certain risk vs. reward characteristic; the specific method must be decided by each trader. As the level of confirmation increases, the level of risk is reduced. As risk is reduced, the level of potential reward is also reduced. Traders must balance their levels of risk tolerance against their reward objectives.
The Signal Confirmation rules are: 1. No Confirmation 2. Price Confirmation 3. Price/Volume Confirmation 4. Independent Corroboration by Separate TradingExpert Components Important
it’s been a challenging market this year, and making trading decisions has never been easy. Which direction the market is likely to move plays a huge part in stock trading decisions.
The Expert Rating system on the market with its combination of 400 rules on the Dow 30 index and the NYSE internals has always provided us an early indication of direction changes.
No system is infallible, and when the Expert System on the market was created, we noticed that ratings of 95 or higher to the upside or downside (maximum rating is 100 btw) were significant. We also noticed a marked improvement in the accuracy of the ratings if we used a confirmation technique with a momentum indicator.
After much research, we discovered that the Phase Indicator (a version of a MACD histogram) was the most accurate tool to confirm high ratings.
*** Here’s how we use Phase to confirm a high Expert Rating. ***
When a rating of 95 up or 95 down is triggered on the market, we look for the Phase histogram to change direction. The change in direction must be to the direction of the rating. This change does not have to happen on the day of the rating, but it must occur within 2 to 3 days on either side of the rating day.
If the Phase does not change direction, the rating is considered not confirmed.
This short video analysis of the last 4 ratings shows this process in action.
The WinWay TradingExpert Pro Market Timing signals are not a perfect system. If they were no doubt the founders would have kept it secret and traded the signals themselves.
The signals that give us early waring of a change in direction of the market are proprietary. The 400 rules that are used by the Artificial Intelligence inference engine to determine change of market direction use many of the widely known technical tools, read review here.
The rating calculation and the indicators contributing to the ratings have not been changed for many years. A decision was made some years ago to avoid constantly moving the goalposts as the constant optimizing or back fitting erodes the validity of the system.
High ratings to the upside or downside of notice have to be 95 or greater (the maximum is 100). the ratings are considered confirmed when the Phase indicator that is outside of the AI system, changes in the direction of the high rating.
So ratings have fired in the last few months how do we confirm them?
We look for the Phase indicator ( a derivative of MACD) to change in the direction of the signal. This needs to occur within a 3 day window before or after the rating.
The last 2 market timing signals illustrate this nicely.
August 18, 2022 97-2 up signal on the market
The up signal occurred during a a 3 day down period on the uptrend, however the Phase indicator did not change direction (it would need to turn up after going down) within the window for confirmation. This signal is therefore unconfirmed by Phase.
August 22, 2022 down signal on the market
The down signal occurred on 8-22-22. 100 down is the strongest signal the market timing generates. In this case the Phase turned down after a prolonged upward move, on the day before the signal. This is considered a confirmed down signal on the market.
The rules that contributed to 0-100 down on the market
The 100 down signal is the strongest signal the AI system generates. Here are the major technical events that contribute to this rating.
Trend Status has changed to a strong down trend. This indicates that a downward trend has started that may continue in this direction. This is a moderate bearish signal.
The 21 day stochastic has declined below the 80% line and the price phase indicator is decreasing. In this strongly downtrending market this is an indication that the downtrend will continue.
Volume accumulation percentage is decreasing and the 21 day stochastic has moved below the 80% line. In this strongly down market, this is taken as a very strong bearish signal that could be followed by a downward price movement.
The exponentially smoothed advance/decline line has turned negative when the up/down volume oscillator and the advance/decline oscillator are already negative. In this market, this is viewed as a bearish signal that could precede a downward price movement.
The up/down volume oscillator has turned negative when the exponentially smoothed advance/decline line and the advance/decline oscillator are already negative. In this market, this is viewed as a bearish signal that could precede a downward price movement.
The new high/new low indicator has reversed to the downside. This is a reliable bearish signal that is often followed by an downward price movement. In this market a continued strong downtrend can be expected.
This video on the Market Timing signals in AIQ is also applicable for our WinWayCharts TradingExpert Market Timing. Check it out.
Market volatility continues. In this update we’ll take a look at the current AI signals on the Dow Jones. For folks less familiar with our AI engine here’s a recap of what we do.
TradingExpert Pro uses two AI knowledge bases, one specifically designed to issue market timing signals and the other designed to issue stock timing signals.
Each contains approximately 400 rules, but only a few “fire” on any given day. In the language of expert systems, those rules that are found to be valid on a particular day are described as having “fired”.
Rules can fire in opposite directions. When this happens, the bullish and bearish rules fight it out. It’s only when bullish rules dominate that the Expert Rating signal is bullish, or when bearish rules dominate that the Expert Rating signal is bearish.
The Expert Rating consists of two values.
The upside rating is the value on the left and the downside rating is on the right. Expert Ratings are based on a scale of 0 to 100. An Expert Rating of 95 to 100 is considered a strong signal that the Stock or market may change direction.
An Expert Rating below 90 is considered meaningless. A low rating means that there is not enough consistency in the rules that fired to translate to a signal. The expert system has not found enough evidence to warrant a change from the last strong signal.
When AIQ released StockExpert in 1987, the Expert Ratings were the foundation of the system. This release represented the first software product developed for personal computers that used Artificial Intelligence to signal equity movement. AIQ’s founder and knowledge engineer, Dr. J.D. Smith, chose to use expert system technology that was developed at Stanford University in the late 60’s. An expert system uses a knowledge based rule driven structure.
Dr. Smith tested hundreds of technical rules that had been published by respected analysts.Those rules that tested well were placed into a knowledge base of rules. Rules were weighted based on their effectiveness. When a series of bullish rules was triggered, an Expert Rating buy signal was generated. A series of bearish rules generated an Expert Rating sell signal.The sell signal that the AI system issued on April 18, 2019 presaged a 2000 point move down. Things changed on June 4, 2019 the AI system issued a buy signal the market is up over 2000 points.
In this video Steve Hill explains the internal rules of the Expert System that generated the signal
WinWay Charts AI issued a market down signal of 99 on April 18, 2019. Price Phase, our custom indicator that we use to confirm ratings turned down 4 days after the rating. Usually we like to see this indicator turn down closer to the rating, but the AI Expert system is often a little early.
The two significant rules rules that fired on this 99 down are below
“Intraday high prices of the market have increased to a 21 day high. Never the less, the advance/decline oscillator is negative. This unusual event is read as a very strong bearish signal that is often followed by an downward price movement. “
“Intraday high prices of the market have increased to a 21 day high. But the up/down volume oscillator if negative. In this uptrending market, this is taken as a very strong bearish signal that is often followed by downward price movements. “
The prior AI rating on the market was a 100 up on March 11, 2019 the market moved up over 850 points to the April down signal. Here are the AI rules that fired for this rating
“The market closing average has exceeded the 21 day exponentially smoothed average price. At the same time, accumulation is increasing in a strong down market. This is taken as a bullish signal that could be followed by a reverse in trend direction. “ “The Money Flow Indicator has reversed and is now advancing. In this downtrending market, this is taken as a weak bullish signal that could indicate an upward movement in the market averages. “ “Analysis of the rate of change of the exponentially smoothed average price suggests that in this strongly downtrending market an uptrend is starting to form. This is taken as a strong bullish signal that is usually followed by an upward movement in prices. “ “The new high/new low indicator has reversed to the upside. This is a reliable bullish signal that is often followed by an upward movement in prices. In this strong downtrending market a reverse in trend could start shortly. “
Ultimately any AI down signal is a note of caution in this market.
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