🎯 How KES Algorithm Works

Advanced momentum scanning with proven 68% win rate

What is the KES Algorithm?

KES (Kinetic Energy Score) is a proprietary momentum scanning algorithm that identifies stocks with high probability of short-term gains. By analyzing volume, price action, and technical indicators, KES assigns each stock a score from 0-10.

68%

Win Rate

2.24

Profit Factor

4.81

Sharpe Ratio

40%+

Annual Return

Understanding Signals

The scanner runs twice daily and generates signals when stocks meet specific criteria:

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Main Scan (3PM ET)

Daily momentum analysis with KES scores ≥ 6.0

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Intraday Alerts

Real-time momentum breakouts during market hours

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Score Range

6.0-7.0: Good | 7.0-7.5: Great | 7.5+: Excellent

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Portfolio Tracking

Monitor your trades and track performance over time

Sample Signal

IIPR

KES Score: 8.0

Price: $52.70

Type: Main Scan (3PM ET)

Signal Time: Nov 5, 2025 15:00 ET

Expected Return: 3-8% in 5 days

Recommended Trading Strategy

Based on backtesting 247+ trades, this strategy has proven most effective:

Entry: Buy stocks with KES score ≥ 6.0 from the 3PM scan
Position Size: $3,000 per trade (10% of $30,000 portfolio)
Hold Period: 5 trading days
Exit: Sell after 5 days regardless of price
Risk Management: Only trade signals from the main scan, not intraday alerts
Portfolio Limit: Maximum 3 positions open at once

Why 5 Days?

Backtesting shows that momentum typically peaks within 3-7 days. The 5-day hold period captures the sweet spot between early exits and diminishing returns. This systematic approach removes emotion from trading decisions.

How Scoring Works

The KES score is calculated using weighted factors:

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Volume Surge (30%)

Unusual volume indicates institutional interest

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Price Action (25%)

Strong upward momentum with minimal pullback

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RSI & MACD (25%)

Technical indicators confirm trend strength

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Volatility (20%)

Optimal volatility range for consistent gains

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