Every night, once each market has closed, InbestPlanners analyses about 1,300 stocks in 12 markets and publishes signals: a buy price for the next session, a target, a stop and a Conviction Score. You choose which ones to follow and you place the orders in your own broker. We do not execute anything.
The 12 markets are the S&P 500, NASDAQ-100, Dow Jones, Russell 1000, DAX 40, CAC 40, IBEX 35, Euro Stoxx 50, FTSE 100, SMI, OMX Stockholm 30 and OMX Copenhagen 25. Each one is processed once its own closing price is final at the data provider.
In four steps
What a signal looks like
- 1The method and the state. "New" is a signal published after the last close, to buy in the next session.
- 2The buy price: the last close plus 0.5%. It goes in as a limit order, valid for that session only.
- 3The target, measured on the published buy price: +3% for Bounce, +10% for Impulse.
- 4The stop: it depends on how much the stock moves (its ATR), with a maximum per method. It can change: the signal always shows the one in force.
- 5The conviction, from 0 to 100: the probability the model gives the signal of closing in profit. It does not say how much.
Two methods: Bounce and Impulse
Bounce buys a stock that has just fallen sharply, in a setup that has often recovered before. It is a short trade: days.
Impulse buys a stock in a strong uptrend, in a setup where such trends have often continued. It asks for more patience: weeks.
- 1After three sessions of heavy selling the signal is published, after the close: a limit buy at the close +0.5%, a +3% target and a stop.
- 2The next day the stock opens below the buy price: the limit order fills at the open.
- 3A few sessions later the price touches the target and the limit sell closes the trade.
- 1The stock breaks out of the range it had been in for weeks: the signal is published with a limit buy, a +10% target and a stop.
- 2The buy fills in the next session.
- 3Several weeks later it reaches the target. Impulse asks for patience: not every signal gets there, which is why it has more exits.
Side by side
The same company can have a Bounce and an Impulse signal at once: they are separate signals with their own levels. Every exit rule is declared before the signal is published, and none is decided afterwards.
The Conviction Score
Every signal carries a score from 0 to 100: the probability, estimated by a model trained on our history of signals, that the signal closes in profit. It is a model output, not advice and not a forecast of how much you will make.
Out of sample, High-conviction Bounce signals closed in profit 79.0% of the time and Low ones 60.8%; for Impulse, 73.7% and 54.0%. Gross backtest figures, before commissions and taxes. The model ranks signals better than chance, but the gap between neighbouring bands is a few points, and a high score says nothing about how large a loss can be.
The life of a signal
The guide From Signal to Exit walks through each step and what to do in it.
Placing the orders in your broker
First the buy (1). Once it fills, the target (2) and the stop (3): whichever is touched first closes the trade.
Two details that matter
The target and the price stops act during the session, like your orders. A gap down can fill a stop below its level.
The trailing stop, the RSI(2), the 200-session average, stagnation and time are evaluated at the close, and the exit is the next open. A stop order in your broker at the trailing level can sell earlier than the rule, during the session. To follow the rule exactly, check after the close and sell at the open.
The stop also changes: the volatility stop expires (session 10 in Bounce, 20 in Impulse) and the trailing stop rises. The signal always shows the stop in force. Features vary by broker, country and account type, and InbestPlanners does not recommend any broker.
What you see with and without a plan
Habits worth keeping
These are working habits, not guarantees:
- Choose your conviction band and keep to it. The feed opens on Medium and above. Picking signals by feel makes your results impossible to compare with anything.
- Spread the risk. Three to five positions mean one loss affects only part of the portfolio.
- Look beyond your home market. Twelve markets give more choice and less dependence on one index.
- Respect each method's rhythm. Bounce resolves in days; Impulse needs weeks. Closing an Impulse at +6% because "it is enough" is a different strategy from the one we measure.
- Read the context as information. The market-conditions label and the "earnings in N days" mark describe facts and past measurements, not verdicts on this signal.
- Treat each signal on its own. A loss last month on a stock says nothing about its next signal.
What to expect
- Losses are part of it. Around 3 in 10 closed operations lose. In Bounce a loss is usually larger than a win: it wins more often, not by more.
- Results are statistical. They show over dozens of trades, never on one.
- Every figure we publish is gross and pre-tax, before commissions, slippage and taxes, and past results do not guarantee future ones.
Start here
This article is for educational purposes only and does not constitute financial advice or a personal recommendation. Past performance does not guarantee future results.