Getting Started With Kaigo
October 29, 2022
Welcome! We're excited for you to start your journey with Kaigo Stocks. If you've found us, you probably understand how complex and difficult it is for retail traders to find edge in the market and to stay consistent in their system(s). Our mission at Kaigo is to get more retail traders in winning trade setups and to do that as easily as possible.
Over your 14-day free trial, you'll see the power and consistency of the Kaigo algorithmic system. The 3 goals in this onboarding article are:
1. Learn how to navigate the Kaigo Dashboard and follow signals with automated notifications on target/stop
2. Deconstruct the information in a Kaigo Signal and relating it to your own personal criteria
3. Integrate your own cadence with using Kaigo, in addition to developing your own risk management plan for consistent profits
Understanding the Kaigo Dashboard
Navigating to the dashboard
Upon joining the Kaigo Slack channel, you'll receive a DM from the KaigoStocks Bot. If you click on 'KaigoStocks' under app in the right-side toolbar, you'll be taken to the "Message" tab of our dashboard. Click the on the "Home" tab to be taken to the dashboard to see open plays
Find your perfect signal by filtering
In any given moment, there may be a handful of open signals to choose from. User's can filter open signals by strategy: either countertrend (scalp against the trend), or continuation betting on the current market trend continuing (be on the lookout for a follow-up article on how to factor in trends into your trading plan!). Users can also sort plays by current risk to reward ratio, date added, and price.
Turn on/off notifications for your favorite signals
Once you find a signal that you like, press 'Follow Signal' which will send you a confirmation message in the 'Messages' tab. Sit back and relax until the app notifies you that either target or stop loss is hit the second it happens.
Setting up additional notifications for new signals and well-timed entries
As opposed to being a stale text message thread of signals, the Kaigo dashboard is designed to be used whenever our members want to be active in the market. This begs the question, "when should i be looking at the dashboard?".
While some users are always tapped in on our signals, we advise other users to subscribe to the #notifications-newsignals channel to be notified whenever a new signal is created. For even better timed entries, join the #notifications-buyzone channel to be notified when a signal has re-entered the entry zone.
Deconstructing a Kaigo Signal
Understand the anatomy of a signal
Let's interpret the different parts of a Kaigo signal:
SHORT CRSP (7/13 12:30PM) means "On 7/13 at 12:30PM, the algo signaled a SHORT CRSP signal."
Current Price is the current price of the stock at the moment you loaded up the dashboard — in the screenshot above, CRSP's price is $81.92 as of Jul 14, 2:40PM (PST).
Entry Price is the recommended entry of the signal to ensure a favorable risk to reward.
Stop Price is the price we call the trade a loser and exit our position
Target Price is the first target we have for this signal.
Win % is the win-loss record of this CRSP stock with our Kaigo algo since 2016. In this case, 11 wins and 4 losses, historically. We consider trades that hit stop losses first as "losses" and trades that hit target first as "winners".
Current Risk to Reward is perhaps the most important stat (next to win %). In this case, because the play has already gone our way, the risk to reward is 0.52. This means that if you bet $100 on the trade, if target is hit first, you'd win $52. Generally, we recommend not chasing trades that have already moved towards the target (and that's why we recommend subscribing to the channel #notifications-buyzones).
Reading a play on TradingView
For those of you technically inclined, instead of searching for the ticker and looking at the chart, we include a published tradingview idea link with each signal. We include a drawing of the risk:reward profile at the time of the signal, in addition to allowing users press "Play" on the right-hand side of the chart to see how the idea played out in real time. Here's a link to the chart referenced above: https://www.tradingview.com/chart/DHR/BDrIYgoZ-DHR-SHORT-Idea/
Be on the lookout for pt.2 on how to develop your own personal trading plan with risk management and how to leverage different market trends/epochs to maximize your win % and profitability! Reach out to us on the channel if you have any questions.