TradeSmith, a financial technology firm based in Baltimore, has developed an AI-powered trading system that identifies specific market patterns or “signals” with a historical accuracy rate of 90% or better. This innovative system evaluates 2.09 million potential trades daily, aiming to leverage repeatable conditions across market cycles. In a recent one-year backtest, trades based on these signals outperformed the S&P 500 by approximately 3-to-1.
Founded by CEO Keith Kaplan, TradeSmith serves over 134,000 clients in 86 countries, managing over $29 billion in assets. The new system is set to be showcased in a free event on April 22, 2023, at 10 a.m. Eastern, allowing attendees to explore the software and its capabilities. Early findings indicate notable gains; for instance, signals involving Invesco Ltd. produced an 18.8% gain in 11 days, while Lam Research Corp. saw an 11.4% increase in 15 days.
Investors can benefit from the firm’s extensive research, with high-return examples from options trading, including a 1,082% gain from Generac Holdings Inc. in 33 days. The new system’s performance signals may revolutionize investment strategies, offering a data-driven alternative to traditional methods.
