REM Algo - Stocks

Risk Evaluated Momentum Algo (REM Algo) is a swing-trading indicator built for hourly stock charts, designed to help you visualize a stock’s underlying strength vs. weakness in real time—while also issuing alerts for potential entries, exits, and profit-taking opportunities.

REM Algo appears as an indicator below your chart with three key reference levels, calculated dynamically for each stock, plus the REM line itself:
• Gray Take Profit Line (dynamic)
• Red Stop Loss Line (dynamic)
• Dashed Zero Line (strength/weakness threshold)

https://ibb.co/7dq7VpJV

Between these levels, the REM Line (zigzag) represents the REM formula:
• Green REM line = hourly closes above 0 REM (underlying strength)
• Red REM line = hourly closes below 0 REM (underlying weakness)

Signals (crosses) and what they mean

Crosses can appear/disappear in real time as conditions develop (during regular market hours), giving you early visibility into developing setups:

• Green cross (Entry / Buy)
Signals a potential long entry as REM transitions from negative to positive (weakness → strength).

https://ibb.co/pjwNTQTY

• Red cross (Exit / Sell)
Signals potential weakness and a possible exit. REM dipping below zero can be an early warning, but the Stop Loss Line defines the “maximum tolerated weakness” before the position should be cut.

https://ibb.co/DDxCzHt9

• Gray cross (Take Profit / Sell sooner)
When REM rises above the Take Profit Line, it suggests exuberance. A gray cross appears when REM drops back below that take-profit level—often indicating exhaustion. If “Take Profit Sooner” is enabled, this becomes an earlier sell trigger rather than waiting for a red exit cross.

https://ibb.co/n8bgkp0Q

How alerts work

Because the REM line is calculated in real time, signals can briefly trigger and then reverse. To reduce the impact of momentary false breaks (“fake-outs”), REM Algo only issues trade alerts at fixed hourly checkpoints, and only if the signal is still valid at that time.

Alert windows

Alerts trigger if the signal conditions are met on each hourly close (from 10:30 AM to 3:30 PM ET). The contents of the alert message is prepopulated with the templates used by trading automation systems such as TradersPost, or you can input your own custom messages.

Earnings risk controls (optional)

If enabled, Close Positions Before Earnings adds an “earnings blackout” risk filter:
• No new buys on the day before earnings
• If already in a position, the system aims to close at 3:30 PM ET the day before earnings to avoid earnings-gap risk.

Best use cases

REM Algo – Stocks works best for:
• Growth stocks with market cap > $5B and share price > $1
• It is best to avoid using it on penny stocks and stocks exhibiting extreme volatility.

Important performance considerations

REM Algo is a momentum approach:
• Performs best when price is trending
• Choppy/sideways conditions can result in losses that the algo aims to keep small
• Long-run profitability is supported by risk controls (dynamic stop/TP levels, hourly confirmation, optional profit-taking sooner, earnings avoidance) and allowing winners room to develop.

The aim is to keep the losses small and manageable while letting any winning trades mature for overall trading strategy profitability.

RISK DISCLAIMER

This indicator provides signals and risk-management structure, not guarantees. The inherent risks involved with trading and investing in the markets, include the loss of your investment. All content, tools, scripts, articles, and education provided by REM Algo are for informational and educational purposes only. Past performance is not indicative of future results.