How Trade Tracer works.
And why it works.

Trade Tracer is built around one core idea: aligned timeframes find the highest-probability trades. When the weekly chart agrees with the daily chart agrees with the intraday chart, you have institutional consensus, sector flow, and short-term momentum all pointing the same direction. That's the setup we want.

The scanner runs every night after the close and grades each name in the universe on a 13-point confluence checklist. The checklist covers things like multi-timeframe alignment (Weekly → Daily → 65-minute → 15-minute), sector relative strength (we only take stocks in the top 5 sectors by 4-week performance), trend health (5-day moving average and YTD anchored VWAP), and momentum (Awesome Oscillator, Bill Williams Alligator state).

A name has to score at least 8/13 to qualify. We then rank by score and feature the strongest setups for the day. The rest go on the Watchlist — still tracked, still on your radar, just not the top-of-card pick.

The framework is fully discretionary at heart. We codify the rules so nothing slips through the cracks, but you're still the trader. The platform's job is to do the heavy scanning work and put the highest- quality candidates in front of you.

Every time you place a trade, you're transacting with a market maker who hedges that trade in the options market. The size of their hedge, whether they're buying or selling against you, and which strikes their positioning is concentrated at — all of that is documented publicly. Funds with eight-figure data budgets read it every minute. Retail traders never see it.

The Tracer Line is our daily summary of what that hedging flow tells us. One number. Locked at the close. Held stable for the next session.

How to read it

Above the Tracer Line: the regime is constructive. Trends tend to hold. Dips get bought because dealers are hedging by buying the underlying — that's mechanical demand. This is the regime our framework is built for. Take qualifying setups with full conviction.

Below the Tracer Line: the regime has flipped. Now dealer hedging amplifies down moves. Snapback rallies fail. Even high-quality setups get whipsawed. Don't take new positions until the regime reclaims. Manage existing positions tightly.

How we compute it (the educational version)

The math is industry-standard gamma exposure analysis — Black-Scholes applied across every strike of the options chain. The output is a single price level where dealer hedging behavior flips direction. We publish that level. The full options chain data comes from real-time institutional feeds.

What we don't publish — and what makes our Tracer Line different from free GEX tools you'll find online — is the model behind whichdealer positioning regime is currently in force, how we weight different strikes, and how we filter out noise from thinly-traded contracts. Those refinements are why our Tracer Line tracks within $2-3 of professional services costing $200+/month. They're the accumulated tradecraft, and they stay in the codebase.

What it's not

• Not a buy or sell signal — it's a regime classification
• Not a price target — it's a pivot reference, not a destination
• Not guaranteed — it's a probability tilt, not a sure thing
• Not a stop loss — your stop should be based on your position size and risk tolerance, not the Tracer Line

The Tracer Line is best used as a filter: a regime check before you act on any other signal. If the broader market is below its Tracer Line, even your best-looking individual setup is fighting the current. Don't fight the current.

Every featured setup ships with an AI-written report. We use Anthropic's Claude model family — currently claude-sonnet-4-6— to translate the raw scanner output into a paragraph or two of contextual analysis.

The AI is given the same data the scanner sees: confluence score, Tracer Line, hedge pressure levels, sector position, regime state, earnings risk. Its job is to explain why the setup scored, where the risk lives, what would invalidate the read, and how it fits into the current market regime.

How we trained the prose voice

The model wasn't fine-tuned — that's expensive and overkill for this use case. Instead we use careful prompt engineering: a detailed system prompt that defines voice, framework rules, things to never say (no "guaranteed," no specific price targets, no "buy/sell"), and a worked example of an ideal setup report. The model gets fresh setup data each day and produces output that reads like one trader briefing another.

The result: every report is unique to that day's setup but consistent in voice. You won't get the cookie-cutter "this stock looks bullish" slop. You'll get an actual read on why the setup scored and what would change the picture.

Featured setups get AI reports — the rest get template summaries

We only spend the AI budget on the 6 featured picks each day (3 trend continuation + 2 tracer touch + 1 emerging trend). The watchlist setups get a deterministic template-based summary. This keeps Anthropic API spend predictable (~$10-15/mo) while giving the highest-quality writing to the highest-priority signals.

Each day's featured picks cover three distinct trade types. Not because more is better, but because different market conditions produce different opportunities. Sometimes you're in a trending regime (mostly Trend Continuation setups). Sometimes you're coming out of a correction (Tracer Touch dominates). Sometimes a major bottom is forming (Emerging Trend takes over).

Trade Tracer is designed for traders holding 2-10 days. If you're scalping or day trading, our outputs will feel slow. If you're holding for months, we'll feel too active. The sweet spot is the swing window.

Morning routine (5 minutes)

• Open /setups. Read the 6 featured picks. Note which setup types dominate today's slate.
• Check /insights. Is The Pulse Active, Selective, or Sidelines? That's your regime check before any individual trade.
• Glance at the right sidebar's Resilience widget. Are SPY and NDX showing positive breadth? If both negative, even the best individual setups face headwinds.
• Pull up the top featured setup's chart on /chart. Confirm the Tracer Line is where the AI report says it is.

During the day

• Don't watch the chart all day. The framework doesn't depend on tick-by-tick. Check in midday for confirmation that price held above the Tracer Line on any pullback.
• If the Pulse flips during the day (Active → Selective, e.g.), tighten new entries. Don't add risk in deteriorating regimes.
• Use the Live tick to confirm your read at decision points — not as a substitute for the locked Tracer Line.

End of day

• The pipeline runs around 6:30 PM ET. Tomorrow's Tracer Lines and qualifying setups are ready by 7 PM.
• Review your open positions against tomorrow's setups. Anything still on the Watchlist days later? Anything dropping to the Side Watchlist? Adjust risk accordingly.

Position sizing

The platform doesn't tell you how big to go. That's intentional — your size is a function of your account, risk tolerance, and conviction. Use the Position Size Calculatorto translate "1% account risk" into a share count given your stop distance. The framework will surface the setup; the sizing is your call.

The Tracer Line

A daily price level where dealer options hedging flips direction. Above it: trends extend. Below it: snapbacks dominate. Computed from the front-month monthly OPEX. Shown on charts as a solid orange line. The primary regime reference.

Weekly Active Tracer

A reactive, short-term version of the Tracer Line, computed from this Friday's weekly OPEX. Shown as a solid light-blue line. When the Weekly and the monthly Tracer Line are close, the regime is in tight consensus. When they diverge, expect chop until they reconcile.

Structural Tracer

The longest-dated of the three Tracer Lines, computed from next month's OPEX. Shown as a dashed white line. Captures heavier, slower-moving institutional positioning. Use it as the deeper-pocket bias underneath today's tape.

The Pulse

Market regime indicator. Active (clean conditions), Selective (caution), Sidelines (defensive). Driven primarily by SPY's position relative to its Tracer Line.

Hedge Pressure

Strike levels where dealer call or put positioning is concentrated. Red dashed lines mark overhead pressure (resistance from call open interest above spot). Green dashed lines mark support pressure (put open interest below spot). Derived from open-interest weighting on the front-month options chain.

Tracer Touch

A setup type. Stock holding above its Tracer Line, came back to test that level recently, and bounced. Re-entry signal in a confirmed regime.

Emerging Trend

A setup type. Strong name in real drawdown, now above its 20-day MA with a positive-sloping 5-day, showing volume on up days. The transition-to-trend trade.

Resilience

Market breadth measure. Percentage of S&P 500 (or NDX 100) trading above a reference level. Half-Gap Resilience = above today's midpoint of (prior close + open). Tracer Resilience = above each stock's individual Tracer Line.

OPEX

Options expiration. Monthly OPEX is the third Friday of each month and dominates dealer-hedging flow. Our Tracer Line uses front-month OPEX data; the upcoming back-month adds structural context.

Side Watchlist

A featured setup that closed below its entry Tracer Line gets moved here for a 5-day grace period. If it reclaims the Tracer Line, it returns to Active. If not, it drops off.

Founder's Setup

The exact chart Blake reads each morning. 65-minute candles aligned to the open, 5-day moving average, YTD Anchored VWAP, Tracer Line, Awesome Oscillator. Available as a dedicated page.