1. What is TradePlan

TradePlan is an AI-assisted trade planning tool that generates actionable trade plans based on signals from our strategy engine. It does not execute trades on your behalf — every plan requires your review and explicit approval before any order is placed.

2. How It Works

The workflow has five stages.

Signal Intake & Validation — The system receives a signal containing stock symbol, directional outlook, confidence level, strategy fit score, entry/exit fit, and valuation range. If the signal concludes conditions do not warrant a plan, none is created. If you have not completed your risk profile assessment, no plan is generated.

Conflict Detection — The system checks for existing plans on the same signal or same strategy + security. Active plans are surfaced rather than duplicated. Stale drafts are cancelled and regenerated with fresh market data.

Market Data Collection — Four sources are queried in parallel: real-time quote, 30-day daily candlestick data, upcoming corporate events (earnings, ex-dividend, options expiry), and any existing active trade plans for the same security.

Suitability Assessment — All suitability checks are deterministic code, not AI. No short selling is permitted. Buy signals require a strategy fit score of at least 50/100. Weak entry fit requires high confidence. Single-stock concentration above 15% of total assets blocks additional buys. Insufficient liquidity (0.5% of 30-day ADV below $500) blocks the plan. Minimum position size is $500. Position sizing is computed from your risk tier (C1–C5), strategy fit score, upside potential, historical volatility, and ADV constraints.

Plan Generation & Post-Processing — A single AI model call (Claude Haiku) determines entry price, take-profit/stop-loss levels, and reasoning. All AI outputs are then validated and corrected by deterministic code: TP/SL are clamped within the valuation range, risk-reward ratio must be at least 1.5 or defaults are substituted, execution is shifted to valid US trading days, quantities are recalculated from pre-computed target values (whole shares only), and a fixed 3-trading-day validity window is applied. The final plan is validated against a strict schema before submission.

3. Key Assumptions

TradePlan trusts the upstream signal's directional outlook, confidence, and valuation range — if the signal is wrong, the plan will be wrong. Position sizing uses 30-day historical volatility as a proxy for future volatility. Liquidity checks use trailing 30-day average daily volume and do not predict sudden volume changes. All plans use single-order execution — no batch, TWAP, or VWAP. Even for margin-enabled accounts, the system assumes cash-only execution. Scheduling defaults to 15:00 UTC on US regular trading days; pre-market and after-hours are not considered. Only whole shares are supported. All plans have a fixed 3-trading-day validity window.

4. Limitations

Plan generation uses one AI model call with no iterative refinement — suboptimal outputs fall back to deterministic defaults. The system checks single-stock concentration but does not evaluate overall portfolio allocation, sector exposure, or correlation risk. Corporate events are checked, but macroeconomic events, geopolitical risks, and sector catalysts are not. Risk parameters and position caps are hardcoded per tier and do not adapt to changing market conditions. No tax optimization is performed (wash sales, capital gains treatment, tax-loss harvesting). Sell-side plans route to full close or partial reduce but do not calculate optimal quantities by cost basis or tax lot. TP/SL levels are static at creation and do not trail or adjust. Only equity securities are supported — no options, futures, or derivatives.

The investment amounts recommended are calculated based only on the portfolio and cash balances maintained with Longbridge Securities Pte. Ltd. External assets, liabilities, or investment portfolios held with other financial institutions are not factored into these calculations, which may affect the overall suitability of the recommendation for your complete financial profile.

5. Risk Disclosures

All investments carry the risk of partial or total loss. A trade plan does not guarantee profits. Past signal performance does not predict future results. The AI model may produce suboptimal prices or reasoning; deterministic guardrails reduce but cannot eliminate model error. Market conditions may change between plan generation and execution — limit orders may not fill, market orders may experience slippage. The 15% concentration cap may still represent excessive risk for conservative investors. Actual liquidity conditions may differ from historical averages, especially during earnings or market stress. The fixed 3-day window and default scheduling may not suit all securities or conditions. Plan quality depends entirely on signal quality.

6. What TradePlan Does NOT Do

It does not execute trades without your explicit confirmation. It does not constitute investment advice — it translates signals into structured plans. It does not guarantee returns or protect against losses. It does not consider your complete financial picture including other accounts, liabilities, or income. It does not replace the judgment of a qualified financial advisor. It does not monitor or adjust after creation.