AI Technology Revolutionizes Trading During Market Volatility

Editor’s Note: When the market experiences significant sell-offs, panic often leads many to sell their investments. This response is understandable, yet it’s not advisable. Instead, you should refine your trading approach to maximize protection and profit during turmoil.

Keith Kaplan, CEO of TradeSmith, has developed an innovative trading strategy leveraging AI. This technology utilizes machine learning models trained on over 1.3 quadrillion data points and 50,000+ backtests, offering predictive analytics to identify stocks’ potential movements within the coming month.

The outcome? A strategic edge that is unprecedented in the market.

Discover more about this at The AI Predictive Power Event on April 16 at 8 p.m. Eastern. Reserve your spot now!

Now, here’s Keith with insights on how this strategy can benefit you…

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It felt as though the world was falling apart.

Nearly five years ago, amid the escalation of the COVID-19 pandemic, the CBOE Volatility Index (VIX)—the market’s “fear index”—reached its highest recorded level.

Simultaneously, the S&P 500 faced its third-largest single-day percentage drop on record with an 11.98% plunge.

This week similarly struck a chord, as the S&P 500 dipped by 10%, resulting in a staggering $5 trillion loss following President Trump’s tariff announcement on April 2.

Fortunately, the market has since rebounded after the president decided to postpone reciprocal tariffs on countries outside of China.

Like in 2020, when uncertainty peaks, the key is not to flee but to adapt your trading strategy.

TradeSmith’s latest innovation may offer the perfect solution.

We are witnessing the transformative power of artificial intelligence like never before.

Profit and Protect in Times of Market Panic

Much of the current discourse surrounding AI focuses on future possibilities and its potential benefits.

However, at TradeSmith, our future is already here.

We’ve harnessed AI to create a system that delivers market-beating returns—even during challenging periods.

This innovative approach emphasizes not only identifying opportunities but also avoiding pitfalls. Our proprietary AI, known as An-E (analytical engine), excels in this regard.

An-E distinguishes itself by accurately forecasting stock prices for the month ahead, with many of its projections proving highly reliable.

This tool is not limited to identifying rising stocks—An-E also highlights potential declines.

In today’s volatile climate, focusing on defensive strategies can be just as crucial as seeking offensive opportunities, and An-E effectively addresses both.

For instance, consider Occidental Petroleum Corp. (OXY).

• Price at Projection: $46.21
• Projected Price: $49.23 by April 2, 2025
• Confidence Level: 70%

On March 3, 2025, An-E predicted OXY would increase from $46.21 to $49.23 within 21 trading days, marking a 6.53% gain with strong confidence behind the estimate.

Ultimately, OXY reached $49.19 by April 1, 2025, locking in a 6.44% gain in just 20 trading days.

These gains contribute significantly to profitability when replicated consistently throughout a year.

However, An-E’s utility extends beyond merely identifying winners.

On March 4, 2025, An-E projected that Light & Wonder Inc. (LNW) would fall from $106.60 to $92.52 within 21 trading days, indicating a 13.20% decrease with a confidence level of 63%.

As anticipated, by April 2, 2025, LNW dropped to $91.95, resulting in a 13.74% actual loss.

Contemplate this: if you knew a stock had a 63% chance of declining in the approaching month, would you still consider purchasing it? likely not.

In turbulent market conditions, successfully avoiding losses can be as advantageous—or more so—than discovering profitable positions.

Mastering the Data: Winning Strategies and Risk Management

An-E is more than just an additional resource; it is a transformative innovation that empowers traders. As volatility increases across markets, this technology provides the accuracy and insight required to stay agile, ensuring better outcomes even in uncertain times.