What is the Algo Scanner?
The Algo Scanner is an intelligent system that continuously monitors thousands of options and crypto assets, looking for patterns, anomalies, and setups that historically lead to profitable moves. Think of it as having 100 experienced traders watching the markets 24/7, but faster and more consistent.
Key Insight: Instead of manually scanning hundreds of tickers, let the algorithm do the heavy lifting and present you with the highest-probability opportunities.
Pattern Recognition
Identifies recurring setups across multiple timeframes
Real-Time Alerts
Notifies you instantly when criteria are met
Multi-Asset Coverage
Scans both options and crypto simultaneously
Smart Indicators Explained
Flow Momentum Indicator
Measures the intensity and direction of institutional flow in real-time. Unlike traditional volume indicators, this focuses specifically on smart money movement.
Green Zone (70-100%): Strong institutional buying, high conviction setup
Red Zone (0-30%): Heavy selling pressure, avoid or consider puts
Risk/Reward Optimizer
Automatically calculates optimal entry, exit, and stop-loss levels based on current market structure and historical volatility patterns.
- Entry Zone: Best price levels for maximum edge
- Profit Targets: Multiple exit levels based on probability
- Stop Levels: Risk management with precise stops
Volatility Breakout Predictor
Identifies when assets are coiling for major moves by analyzing volatility compression, options positioning, and technical setup convergence.
Pro Tip: Best used 1-3 days before earnings or major events when volatility is artificially compressed.
Key Scanner Features
Unusual Options Activity (UOA)
Detects when option volume spikes far above normal levels, often indicating insider knowledge or institutional positioning.
Example: NVDA typically sees 50K daily option volume. Scanner alerts when volume hits 200K+ with unusual call buying.
Momentum Convergence
Identifies when multiple momentum indicators align, creating high-probability directional moves.
- Technical momentum (RSI, MACD)
- Flow momentum (institutional activity)
- Sentiment momentum (options positioning)
Gap Fill Probabilities
Calculates the likelihood of gaps being filled based on historical data, volume profile, and current flow.
Use Case: SPY gaps down 1% at open. Scanner shows 78% probability of gap fill within 2 days based on similar historical patterns.
Event-Driven Setups
Scans for optimal setups around earnings, FOMC meetings, and other market-moving events.
- Pre-event positioning analysis
- Post-event continuation probabilities
- IV crush protection strategies
How to Use the Scanner Effectively
1Set Your Filters
Start by defining your criteria based on your trading style and risk tolerance:
Day Traders:
- High volume (5x+ average)
- Short expiry (0-7 DTE)
- Liquid tickers (SPY, QQQ, AAPL)
Swing Traders:
- Moderate volume (3x+ average)
- Medium expiry (1-4 weeks)
- Technical confluence
2Prioritize High-Confidence Signals
The scanner provides confidence ratings for each alert. Focus on the highest-rated opportunities:
90-100% Confidence
Rare, high-conviction signals. Strong edge expected.
70-89% Confidence
Good setups worth considering with proper risk management.
Below 70%
Lower probability. Use for learning or paper trading.
3Combine with Manual Analysis
Always verify scanner alerts with your own chart analysis:
- Check key support/resistance levels
- Verify the overall trend direction
- Look for news or events that might affect the trade
- Confirm the risk/reward makes sense for your account size
Common Mistakes to Avoid
Chasing Every Alert
Quality over quantity. Focus on the highest-confidence signals that match your strategy.
Ignoring Risk Management
Even high-confidence setups can fail. Always use stops and proper position sizing.
Over-Optimizing Filters
Don't make filters so restrictive that you miss good opportunities. Start broad, then refine.
Pro Tip: Start with paper trading scanner alerts for a week to understand how they perform before risking real capital. Track which types of setups work best for your style.
Advanced Scanner Strategies
Multi-Timeframe Confluence
Look for setups where scanner alerts align across multiple timeframes:
- Daily chart shows bullish momentum
- 4-hour chart confirms the direction
- Scanner detects unusual options activity
- Enter on 15-minute chart pullback
Sector Rotation Scanning
Use the scanner to identify which sectors are seeing unusual activity:
Example: Scanner shows unusual call buying in XLE (energy ETF) + multiple energy stocks. This could signal a sector rotation into energy before it becomes obvious on charts.
Final Thoughts
The Algo Scanner and Smart Indicators are powerful tools, but they're most effective when combined with solid trading fundamentals. Use them to enhance your edge, not replace critical thinking and risk management.
Remember: the goal isn't to find more trades—it's to find better trades. Quality setups with high probability of success will always outperform quantity-based approaches.
Next Step: Start by scanning your watchlist daily. Note which patterns the scanner identifies consistently. Over time, you'll develop an intuition for which types of alerts work best in different market conditions.
TycoonX (tycoonx.ai) – Scan Smarter. Trade Better.