Editor’s note: If you want an advantage in this market, you have to look at it differently.
The usual approach – following earnings, headlines and analyst calls – will only get you so far. By the time those signals appear, the move is often already underway.
That’s why I want to introduce the TradeSmith team. They have developed a new AI signals system designed to identify high probability trading setups based on patterns in the data – not opinions.
In a market where conditions change and short-term opportunities can emerge quickly, this type of approach is worth understanding.
They host a Live event on April 22 at 10 a.m. ETwhere they will learn exactly how the system works, and how to use it to identify opportunities available at the moment. You can reserve your place here.
You will also be able to pre-test the system and see what it identifies in the market.
For now, the article below does a great job of explaining the idea behind it…
******************
In September 1995, a philosophy professor read a statement in The Washington Post The killer was revealed.
Her name was Linda Patrick. She was sitting at her desk at Union College in Schenectady, New York, when a colleague handed her a printed copy of a 35,000-word anti-technology speech published by the newspaper.
Despite the longest and most expensive criminal investigation in US history, the FBI failed to catch its author, the Unabomber, for 18 years.
Between 1978 and 1995, 16 homemade bombs killed three people and injured twenty others. In desperation, the office decided to publish his statement, hoping that someone would know who wrote it.
Patrick recognized him immediately. The anti-technology stance matched the extreme views of her estranged brother-in-law, Ted.
She called her husband, David Kaczynski, and asked him to come to her office to read it himself. He was skeptical at first. Then he noticed the phrase “logical people with cool minds” that his brother often used.
These were not the only signs that Ted Kaczynski was the bomber. After Patrick reported it to the FBI, its forensic language experts found a host of details that pointed to him.
- Unusual misspellings — “deliberately” instead of “deliberately,” and “clew” instead of “manually” — that matched the spelling reforms he championed Chicago TribuneWhich indicates that the author grew up in or near Chicago.
- The phrase “raising children” rather than “raising children” is a northern US dialect.
- Words like “unusual” and “imaginative” suggest a highly educated author.
Each sign alone does not mean much. But together they formed a linguistic “thumbprint,” a unique pattern that pointed to one man.
Today, at TradeSmith, we use AI to do something similar. But instead of tracking down criminals, we’re looking for opportunities across 2,467 daily stocks.
As you can see, every great trade has its own mark as well. In linguistics, it may be a writing style or a phrase. In the stock market, this is a unique combination of data points that together indicate a high probability trade.
Our new system identifies these fingerprints within 90 minutes before Trade happens.
I know that’s a big claim. I don’t take that lightly.
So, I am Open trial version From the software my team and I created to find over 30,000 (and counting) of these thumbprints. This way, you can test it for yourself – today.
Stocks have their own language, too
This type of pattern recognition has been hiding in plain sight for decades.
It started in a mall on Long Island, in a cramped office next to a pizza parlor, where a former mathematics professor was building the most successful hedge fund in history.
Jim Simons had just left his position as director of the mathematics department at Stony Brook University. He worked at a nearby mall running his fledgling business, which he later named Renaissance Technologies.
Simons wasn’t interested in earnings reports or analyst forecasts. He knew that if you did what everyone else did, you would get the same returns as everyone else. He wanted to beat the market, not just follow it.
Therefore, he was looking for unique signals – mysterious, recurring patterns buried in large amounts of market data that indicated predictable movements.
To find them, he didn’t hire Wall Street traders. He hired mathematicians, physicists, and—most notably—two IBM scientists who had spent their careers building speech recognition models.
They were building computer models to predict the next word in a sentence based on patterns in previous text. Simons asked them to apply the same logic to stocks.
The result: Renaissance Technologies generated average annual total returns of 66% over four decades and became the most profitable hedge fund in history.
For decades, this approach has been locked into a handful of elite hedge funds, widening the wealth gap rather than closing it.
But since we founded TradeSmith 21 years ago, our mission has been to change that. That’s what we do with our new trading system inspired by Simons.
Prospectors in the modern era
If you don’t know us already, we are a fintech company based in Baltimore, Maryland that develops hedge fund-level analytical systems for self-directed investors.
More than 134,000 people in 86 countries use our software to manage more than $29 billion in assets. And we’re always innovating – testing trading strategies, financial metrics and data patterns to uncover profitable systems and indicators.
This is what made us stand out in it Forbes, The Wall Street Journaland The Economist.
It started with our risk management software, TradeStops. It takes the emotions out of investing by showing you the ideal time to sell your shares.
We’ve also created software that detects hidden seasonal patterns in the market… detects undervalued options trades… and uses AI to predict stock movements for up to 21 trading days.
But our new AI system goes deeper than ever before.
He evaluates 2.09 million potential trades per day across 2,467 stocks, runs each through 847 individual calculations, and looks for the same types of signals that Simons built his career on.
When the right combination of factors are aligned, our system flags it as a high probability trading setup.
We knew that this new system was powerful. However, the results surprised us.
Historical win rates of 90% and higher
takes LAM Research (LRCX)one of the largest manufacturers of semiconductor manufacturing equipment.
Two factors had to be aligned to trigger this signal. The stock had to close above its 200-day moving average. This close was supposed to fall two days before the market holiday.
Nothing about the company’s earnings…or the semiconductor sector…or the broader market. Just a price condition and a calendar condition, lining up at a specific moment.
That’s it.
When the signal was triggered on August 28, 2025 — two days before Labor Day — LRCX rose 11.4% in 15 days.
The historical accuracy rate behind that signal was 86%.
Or take a data analysis company palantir (Belter).
On October 30, 2020 – with markets in turmoil due to a new coronavirus variant – our system flagged the thumbprint with a historic success rate of 95%.
Every time Palantir fell for at least three consecutive days… its daily price fluctuations were shrinking… and at least 5,000 US hospitals were accepting new patients… the stock was on the verge of a big jump.
The forecast called for a 5.8% increase in nine days. Result: 15.1% in seven.
Bull or Bear: Our system doesn’t care
You’re probably wondering how hospital numbers relate to Palantir’s stock price.
Its largest clients are hospitals. With about 6,100 hospitals operating across the United States, falling below 5,000 facilities open would cause problems for the company’s revenue. When hospital numbers decline, Palantir feels it — and so does its stock price.
Our system is designed to find these types of connections. Not the personalities of the hospital itself, but the fingerprints they leave behind in the data.
No one knows exactly why each signal works well. It doesn’t matter. Our system is objective. She looks for alliances that have worked before, most of the time – even when there’s no obvious reason why.
This new type of trading system does not care whether we are in a bull or bear market. It does not require a strong economy or a calm geopolitical environment. It just needs certain factors for alignment. This is what makes it so powerful in today’s market.
I’ll walk you through how it works in more detail – including the signals it’s tracking now and the trades it’s flagging for the coming weeks – during Artificial intelligence signals trading event He releases.
You go Wednesday, April 22 at 10 a.m. EST. So make sure to clear some time in your calendar and Register your interest here.
When you register, you will also get immediate access to the new beta version of our software. You can use it to find active signals for thousands of stocks – for free – until April 22.
Here is the link again to register and test our new software. I hope you can achieve this.
My team and I have been working on this new project for the past 12 months. And since becoming CEO of TradeSmith, I’ve never been more excited about what we’re about to reveal.
Keith Kaplan
CEO, Tradesmith
