What Makes This Trade Great: Using AI the Right Way with ALTS

What Makes This Trade Great: Using AI the Right Way with ALTS

Jan 14, 2026

By Barrie Einarson

One of the most common questions I get lately is: “Barrie, how are you using the Trade Ideas AI right now?” To Subscribe to Trade Ideas:
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Today’s ALTS trade is a perfect example of my answer.

The AI originally alerted ALTS at $2.20. If you jumped in immediately, sure—you might have grabbed a few cents as it pushed up to about $2.27. But that’s not how I’m approaching AI alerts anymore.

The Key Shift: Patience Over Prediction

What I’ve been emphasizing—both yesterday and in the trading room—is this:

I don’t chase the initial AI alert. I wait for a re-entry.

Here’s the process I’m using now:

  • The AI gives an initial alert (in this case, $2.20)
  • The stock pulls back to a lower reference price (around $2.13)
  • I wait for the stock to reclaim halfway between those two levels
    → In this case, roughly $2.17
  • That’s when I start paying attention

This gives me confirmation, structure, and a much better risk-to-reward setup.

The ALTS Execution

ALTS did exactly what I wanted to see:

  • Pulled back
  • Regained strength
  • I entered around $2.20 (not quite at $2.17, but close enough given the momentum)
  • The stock quickly pushed up to $2.38

That’s a solid percentage move, especially for a lower-priced stock.

Why This Matters

The AI is powerful—but it’s not meant to be followed blindly.

For me, the best use of AI right now is:

  • Let it identify opportunity
  • Let price action confirm it
  • Enter on strength after the pullback

Yes, it can be a little choppy at the start—but I’d much rather deal with minor chop than get trapped chasing highs.

Final Thought

The goal isn’t to trade more.
The goal is to trade better.

Wait for the re-entry.
Let the market prove itself.
Then take the trade.

That’s what made this ALTS trade great.