Trader studying flash cards at desk with live trading charts on screen
A documented process. Not a gut feeling.

This is how
the system works.

Five minutes reading this page is worth more than six months of guessing. Here is the exact logic behind every grade the scanner produces.

Why most systems fail

Data without a framework
is just noise.

Most scanners show you numbers. RSI, volume, price. They don’t tell you what those numbers mean together, whether the trend is healthy, or whether this is actually a setup worth your time.

The Odd Lot scanner runs every stock through a documented grading framework before it shows up on your screen. If a stock doesn’t pass the full criteria, it doesn’t appear. You only see setups that qualify — graded against the same rubric every single time.

Two questions. Two grades.

Quality grade. Entry grade.
Both matter.

Quality Grade

How strong is the stock and setup overall?

The quality grade evaluates the stock itself — its fundamental health, trend structure, relative strength versus the market, and technical momentum. A high quality grade means this is the right type of stock to be watching. It does not mean buy now. It means this setup passed the full rubric and belongs on your radar.

A+ Elite setup A Strong setup B Watchlist C Monitor only F Does not qualify
Entry Grade

Is right now the right moment to act?

The entry grade evaluates current timing independently from quality. A great stock at the wrong moment is still the wrong trade. The entry grade scores how close the stock is to its ideal entry zone, whether momentum is constructive or overextended, and whether volume behavior supports a new position. Quality and entry must both be strong before a setup is actionable.

A+ In entry zone A Near entry zone B Approaching C Extended — wait F Do not enter
Odd Lot scanner showing AVGO with quality grade A, entry grade A, valid entry status
The trend filter — Step 1

Eight criteria.
All must pass.
No exceptions.

Before a stock receives any grade, it runs through an 8-criteria trend filter. This is non-negotiable — a single failure means an automatic F regardless of how strong the fundamentals look.

The criteria confirm the stock is in a confirmed institutional uptrend: price above key moving averages, moving averages stacked in the correct order, the 200-day moving average trending upward, price within a defined range of its 52-week high, and relative strength above the minimum threshold.

This isn’t about predicting where a stock goes. It’s about only considering stocks that are already behaving the way winning stocks behave before their major moves.

The fundamental layer — Step 2

Growth rate, revenue,
margins. In that order.

Once a stock passes the trend filter, it gets scored on fundamentals. Earnings growth rate is the primary signal — the scanner requires a minimum threshold and rewards accelerating growth. Elite growth scores at the top of the range. Growth below the minimum threshold gets flagged as a warning regardless of other signals.

Revenue growth must accompany earnings growth. Decelerating revenue with rising earnings is a red flag, not a green light. Net profit margin scores quality of earnings. The strongest fundamental setups show all three accelerating simultaneously — earnings, revenue, and margins moving in the same direction.

The technical layer — Step 3

Relative strength, momentum,
volume, entry zone.

The technical score covers six dimensions scored independently: relative strength rank versus the S&P 500, RSI in the constructive entry zone, volume behavior relative to the 20-day average, distance from the 20-day moving average entry zone, position relative to the 52-week range, and 5-day momentum. Each is scored against documented thresholds — not discretionary judgment.

Extended stocks get penalized. Stocks near their entry zone get rewarded. Overbought RSI reduces the score regardless of how strong the other signals look. The combined technical score out of 70 points determines whether the timing grades A, B, or below.

What the scanner measures

Eight signals.
Every threshold documented.

Earnings Growth Rate
The primary fundamental signal. Below 20% YoY does not meet the threshold. 20–25% is at minimum. 25–40% is strong. 40%+ is elite. Acceleration across quarters scores higher than a single strong quarter.
Revenue Growth
Must accompany earnings growth. Decelerating revenue with rising earnings is flagged as a warning regardless of the earnings number. 30%+ revenue growth with accelerating earnings is the strongest combination.
Net Profit Margin
Scores quality of earnings. Negative margins score zero. Expanding margins signal pricing power and operational efficiency — a secondary confirmation of fundamental health.
Relative Strength Rank
Measures performance versus the S&P 500 over the prior 50 trading days. Below 70 = below minimum. 70–79 = minimum threshold. 80–89 = strong. 90+ = elite leadership. The highest-weighted technical signal.
RSI (14-period)
45–65 = constructive entry zone. Above 75 = overbought, scores low and triggers a warning. Below 35 = oversold, scores zero. The constructive zone signals healthy momentum without overextension.
MA20 Entry Zone
The 20-day moving average is the primary entry zone reference. Price within 3% scores at the top of the range. More than 15% above = extended, scores low and triggers a warning. The closer to the zone, the better the timing.
Volume Behavior
Compared against the 20-day average volume. Volume drying up on a pullback is constructive — sellers leaving. Volume expanding on a move up is confirmation. Volume expanding on a decline is a warning signal.
52-Week Position
Scores where the stock sits within its annual range. Near 52-week highs scores at the top of the range — strength begets strength. More than 25% below the 52-week high suggests the trend needs more recovery time.
Plain-English interpretation

The data tells you what.
The Read tells you what it means.

Every expanded scanner card generates a plain-English summary of the data — written to explain what the numbers mean in context, what the entry risk looks like as a percentage of downside to the stop level, and what to watch to confirm or invalidate the setup.

It is not a signal. It does not tell you to buy. It translates the framework into language that makes the decision clearer — for a trader who knows the patterns and wants to understand the structure before acting.

The complete system

One loop. Four layers.
Everything connects.

01
Learn
Flash cards build pattern recognition before you open a chart. Know every setup, every candlestick, every strategy before the scanner calls one.
02
Identify
The scanner grades AI infrastructure stocks daily against the documented framework. Quality grade, entry grade, plain-English analysis. Only qualified setups appear.
03
Execute
Paper trading journal logs every call with entry, stop, target, and thesis. Position sizing calculated automatically. Full trade structure defined before the trade opens.
04
Track
Win rate by grade. Average gain per entry type. System expectancy. The feedback loop that tells you whether the process is working — in real numbers, not gut feeling.
The track record

We trade what we grade.
In public.

Every paper trade logged by the Odd Lot scanner is documented publicly — entry, stop, target, grade, thesis, and outcome. Not a backtest. Not a hypothetical. Live calls made in real time, tracked from entry through post-mortem.

The track record either validates the framework or it doesn’t. Either way, you see the data before you pay a dollar.

Trader studying at desk with trading screens
Odd Lot — oddlot.io

The framework is documented.
The track record is public.
The scanner is free to access.

You’ve seen how the grading works. Now see it applied to live setups.

Discipline over hype  ·  Process over prediction  ·  Data over emotion  ·  You don’t get signals. You get structure.