Unlock Advanced Trading Insights with AAII Conviction Plus for MetaStock V19

Developed by the American Association of Individual Investors (AAII) and technical strategist Raymond Rondeau, AAII Conviction Plus bundles three indicators, a risk proportion tool and three systems built on seven quantitative factors

The package emphasizes kinetic conviction—an analysis of price momentum and conviction strength—and was designed through rigorous academic research and backtesting.

It draws on a 10‑year study of all S&P 500 stocks from 2013 to 2023, focusing on high hit rates, risk control and consistent returns.

There are three systems tailored to different time horizons. The Kinetic Conviction PF (Profit Factor) system has an 81 % hit rate, 3.73 profit factor, an average trade length of about 27 days and only 41 signals per year.

It targets traders willing to scan many stocks and prioritize risk and consistent returns.

The Kinetic Conviction LT (Long‑Term) system achieves a 75 % hit rate, 2.66 profit factor and generates roughly 175 signals per year with average trade length of 82 days.

It suits investors focused on total returns and dividend capture.

The Kinetic Conviction ST (Short‑Term) system posts a 77 % hit rate, 2.5 profit factor, and creates about 187 signals per year with trade lengths around 35 days.

It is aimed at traders seeking shorter‑term opportunities. All systems use three conviction‑based indicators: Relative Conviction Momentum (measures volume to gauge trend strength), Optimized Balance Conviction (evaluates up/down conviction levels to predict continuation or reversal) and Kinetic Conviction (emphasizes significant moves and filters out noise).

The package also includes the PROVE Share Calculator to help you determine share quantities and rebalance positions.

Benefits

AAII Conviction Plus provides a scientific approach to trading. By basing signals on kinetic conviction, the systems help you avoid random price noise and focus on high‑probability setups.

Having three systems tailored to different time horizons means you can choose the style that fits your needs: PF for short‑term traders who want consistency and low drawdowns, LT for investors seeking longer holds and higher per‑trade returns, and ST for traders who want more frequent but shorter trades.

The backtested performance metrics give you realistic expectations about hit rates, average returns and drawdowns.

The use of three proprietary indicators provides deeper insight into volume, conviction and price strength.

These indicators can be applied to any security, letting you analyze markets beyond the systems’ signals. The risk proportion tool (PROVE) helps you decide how many shares to buy, how to rebalance as volatility changes and how to manage risk across your portfolio.

Overall, the add‑on gives you quantitative systems, sophisticated indicators and a risk calculator, promoting disciplined trading and consistent performance..