AI Algorithms Transform Trading Amid Market Volatility

Editor’s Note: For some time now, I have asserted that President Trump’s tariffs aim to equalize competition and propel a significant shift towards onshoring. As noted by the Wall Street Journal, “Trump’s Tariffs aim to create a New Economic World Order.”

While this is promising for the long-term economy, their immediate impact on the markets has been tumultuous.

This is where our corporate partner, TradeSmith, becomes essential. They offer an invaluable tool utilizing an AI-driven algorithm named An-E (short for Analytical Engine), which evaluates millions of data points daily to provide one-month price forecasts for numerous stocks, achieving notable accuracy.

Having this tool at your disposal can significantly enhance your trading strategy. Join us tomorrow at 8 p.m. Eastern to learn more during the AI Predictive Power Event—free of charge.

If you’re feeling uneasy about the market, this could be the resource you need. Click here to secure your spot for this event!

In the interim, Keith will provide insights on how predictive algorithms like An-E are outpacing human traders. Over to you, Keith…

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$2 trillion. That’s the staggering sum lost from the markets following President Trump’s sudden tariff declaration, leading to one of the most tumultuous periods in recent market history.

For many investors, this announcement invoked fear and hesitation—resulting in significant losses.

Conversely, a new generation of traders viewed this chaos not as uncertainty but as an opportunity.

Amidst high volatility—where news shifts hourly and conventional strategies falter—a powerful force is emerging as the frontrunner in capturing market profits: AI.

While human investors may react with anxiety or misplaced confidence during turmoil, innovative trading algorithms like TradeSmith’s advanced system, An-E, deliver precise, data-driven forecasts about future market trends.

The Shift: Why AI Is Dominating in Volatile Markets

In stable market conditions, any investor may feel adept. However, true skill—and real profits—become apparent during instability. This is when volatility serves as a stress test.

This is precisely why AI is gaining ground.

Unlike humans, AI remains unaffected by emotion. It does not follow news trends blindly or second-guess decisions. Instead, it sifts through vast amounts of data to produce calculated forecasts, especially in chaotic times.

Introducing An-E: The AI Forecasting Engine Crafted for Volatility

AI-enhanced trading systems, including robo-advisors, have steadily gained traction. In 2024, U.S. robo-advisors managed over $1.46 trillion in assets.

However, traditional robo-advisors are merely basic tools.

The real advancement lies in Predictive AI. These tools go beyond mere portfolio management—they anticipate future stock movements before market reactions occur.

This exponentiates the capabilities of An-E.

Unlike typical robo-advisors, which only adapt according to risk tolerance, An-E offers comprehensive analysis.

This AI-powered engine forecasts stock prices for the next 21 trading days, providing a substantial advantage amidst fluctuating markets.

What distinguishes An-E is its analytical prowess. It processes millions of data points, identifying patterns and pricing behaviors that often elude most investors.

Here is a real-time example:

This forecast’s significance was underscored by An-E’s internal 66% confidence gauge, indicating the forecast’s likelihood of realization.

Just 21 days later, the stock exceeded expectations, soaring to $327.28, yielding a larger gain of 10.89%.

In a turbulent, panic-driven market, such forecasts are not only valuable; they can redefine strategies. While average investors retreat from volatility, the right tools can convert it into profit opportunities.

In this challenging landscape, knowing which companies may decline is imperative to safeguard investment portfolios.

What are the risks involved? Consider this forecast:

On March 7, 2025, An-E anticipated that Discover Financial Services (DFS) would decrease from $167.52 to $150.83 within 21 trading days, projecting a decline of 9.97%.

This forecast’s accuracy was fortified by an impressive 72% confidence gauge.

By April 7, 2025, DFS fell to $150.88, nearly mirroring An-E’s projection—a tangible 9.93% decrease.

Whether capitalizing on market opportunities or minimizing risks, An-E excels where human judgment falters.

Human Emotion Versus Machine Precision

Human traders frequently falter in unpredictable markets. Nervousness can lead to impulsive decisions, causing investors to buy high and sell low.

In contrast, An-E does not succumb to panic.

It simply analyzes vast amounts of data and unveils market movements that often go unnoticed by investors—both bullish and bearish—without emotion influencing its calculations. This includes identifying stocks that may fall next, which is crucial in today’s climate.

The S&P 500’s near 6% drop following the tariff announcement highlighted the importance of An-E’s bearish forecasts.

AI is transitioning from a niche resource to the cornerstone of contemporary trading.

Investment in AI-centric financial services reached $35 billion in 2023, with projections estimating growth beyond $126 billion by 2028.

The reasons for this growth are quantifiable.

Already, 25% of firms report that AI strategies are yielding their highest returns. More investors are leveraging AI not just for market survival, but to thrive.

Here marks the tipping point…

TradeSmith’s Emergency Briefing

To assist investors…