Your website predicts stock prices for the next 5, 10, and 20 trading days.
This opens up three layers of opportunity:
- Short-Term Swing Trades (5 days)
- Medium-Term Moves (10 days)
- Tactical Position Trades (20 days)
Here’s how to think about using them intelligently:
1. Understanding Time Horizons
Prediction Timeframe | Style | Ideal Strategy |
---|---|---|
5-Day Forecast | Fast swing trade | Quick trades, tighter stops |
10-Day Forecast | Classic swing trade | Stronger moves, bigger rewards |
20-Day Forecast | Tactical positioning | Ride trends, add size carefully |
2. Basic Rules for Trading AI Predictions
A. Confirmation First
Don’t blindly trade based only on AI.
Look for:
- Price breaking key technical levels (like support/resistance)
- Volume spikes (more buyers/sellers showing up)
- Trend indicators (moving averages crossover, MACD signals)
B. Size Your Trades Based on Confidence
- 5-day = smaller size, tighter stop-loss.
- 10-day = medium size, more relaxed stop-loss.
- 20-day = bigger size, looser stop-loss but more patience.
C. Risk-Reward Always >2:1
If you’re risking $100, you should aim to make $200 minimum.
3. Specific Strategies Based on Prediction Timeframe
Strategy for 5-Day Predictions — Fast Swings
Goal: Capture quick, short-term pops based on momentum.
Setup Example:
- AI predicts AAPL will rise from $170 to $174 in 5 days.
- Enter at $170.50 after confirmation (e.g., MACD crosses up).
- Set Target: $174.
- Set Stop-Loss: $168.50.
Risking $2, aiming for $3.50 gain = solid reward/risk.
Strategy for 10-Day Predictions — Measured Swings
Goal: Ride medium-sized moves, maybe capture news catalysts.
Setup Example:
- AI predicts MSFT will rise from $310 to $325.
- Enter after price confirms (breaks $312 resistance).
- Target: $325.
- Stop-Loss: $307.
Use trailing stops — move your stop up if the price moves in your favor.
Strategy for 20-Day Predictions — Tactical Position Trades
Goal: Set a position and let trends develop.
Setup Example:
- AI predicts NVDA will rise from $850 to $950.
- Entry: Confirmed breakout over $855.
- Target: $950.
- Stop-Loss: $820 (wider).
Consider adding: Buy in two pieces (half now, half if it pulls back a little).
4. How to Hedge If Wrong
Use Options:
- Buy puts for protection if your trade is large.
- Use stop-loss orders tightly if playing the 5-day and 10-day horizons.
Spread the bets:
- Don’t go “all in” on one signal. Take 3–5 positions and size them small to medium.
- Let statistics work in your favor.
5. Handling Opposite Signals
Sometimes:
- 5-day prediction says “up”
- 20-day prediction says “down”
How to act?
- Play the short-term trend first (small, fast trade).
- Prepare to reverse if longer prediction starts dominating.
- Watch volume and momentum — when they shift, exit fast.
6. Example Table — How a Portfolio Might Look
Ticker | Prediction | Timeframe | Action | Target Price | Stop-Loss |
---|---|---|---|---|---|
AAPL | +3% | 5 days | Buy Fast Swing | $174 | $168.50 |
MSFT | +4.5% | 10 days | Swing Trade | $325 | $307 |
NVDA | +11% | 20 days | Position Trade | $950 | $820 |
TSLA | -5% | 10 days | Short Trade | $215 | $230 |
7. Bonus Advanced Moves
- Partial Profits: Sell 50% of your shares once the stock moves halfway to your target.
- Scaling In: Add to winners on pullbacks if predictions are strong.
- AI Layering: Trade only when multiple timeframe predictions align for stronger confidence.
Final Word:
AI gives you a map — smart traders still steer the car. Layer technicals, size carefully, and let statistics win over time.