Building Risk-First Alerts
What a responsible alert contains
A well-designed alert includes: (1) Instrument name. (2) Zone type and direction (demand long / supply short). (3) Trade Score with component breakdown. (4) Proximal line (entry reference). (5) Distal line (stop reference). (6) Next opposing zone (target reference). (7) Reward-to-risk ratio. In that order — risk before reward.
Why risk comes first
Framing information as 'entry ₹X, target ₹Y, stop ₹Z' puts the exciting (target) before the cautious (stop). Reversing this — 'stop ₹Z, then entry ₹X, then target ₹Y' — is a subtle design choice that primes the reader to evaluate risk before excitement.
No auto-execution
Alerts are information, not instructions. A responsible system never places orders automatically from an alert. Execution decisions, confirmation, and final judgment stay with the human who receives the alert.
Trade Score in the alert
Include the Trade Score breakdown so the recipient can immediately see why the setup scored as it did — Freshness 3, Strength 2, Base 2, +1 EMA bonus = Score 8, Type 1. This transparency lets the reader agree or disagree with the scoring rather than blindly acting.
Practice checklist
- Include: instrument, zone type, score breakdown, proximal, distal, target, R:R
- Order: stop/distal first, then entry, then target
- No auto-execution — alerts inform human decisions only
- Include Trade Score component breakdown for transparency
Mistakes to avoid
- Designing alerts that show only 'BUY at ₹X' with no risk context
- Hiding the invalidation level (distal) from the alert
- Building alerts that trigger automatic orders without human review