Editor’s Note: For today’s Wealthy Retirement, I’m handing the reins to Keith Kaplan, CEO of TradeSmith.
Keith’s team builds the kind of analytical tools most of us have only heard about in the context of billion-dollar hedge funds – and they’ve spent years making that technology accessible to self-directed investors like you.
I invited him to share a breakthrough his engineers have been working on, and I think you’ll find it well worth your time.
He’ll explain even more at his Super AI Trading Event next week. Go here to reserve your spot for free!
– James Ogletree, Senior Managing Editor
Edward Lorenz wasn’t looking for a big idea. He only meant to save a little time.
In 1961, the MIT mathematician was running rudimentary weather simulations on a Royal McBee LGP-30 computer. It was the size of a fridge, droned nonstop, and spat out forecasts on long rolls of paper.
Lorenz was testing how winds shifted across New England. To speed things up, he rounded one of his inputs from six decimals to three.
That tiny change rewrote the entire forecast. What should have been a calm weather pattern spiraled into a violent storm.
He called it the “butterfly effect” because it made him think of a butterfly flapping its wings in Brazil and setting off a tornado in Texas.
This doesn’t only happen in weather forecasts.
A single gene mutation can mean the difference between health and illness. A keystroke error can erase billions from a trading desk. A missed bolt on an assembly line can ground a fleet of airplanes.
The stock market is no different…
- One comment from the Fed can wipe billions off the S&P 500 in minutes.
- A supply glitch in Taiwan can ripple through every tech portfolio on Wall Street.
- A surprise earnings miss can drag down an entire sector overnight.
Each tiny change ripples through the market and moves thousands of stocks.
It’s no coincidence that the late Jim Simons was the top-performing hedge fund manager of all time. He was a math genius who captured these effects with algorithms. (He named his fund “Medallion” to honor the mathematical and scientific medals his team had earned.)
Since its launch in 1988 until 2018, his Medallion Fund delivered average annual returns of about 66% – roughly eight times the average annual return of the S&P 500.
The fund hoovers up earnings reports, price ticks, weather records, shipping flows, and even satellite images of fields, oil tanks, and parking lots. By layering this unconventional data onto market signals, they created models no one can match.
And it’s not the only Wall Street firm that uses powerful software to stack the odds in its favor. Thousands of other hedge funds do, too.
I didn’t work on Wall Street. I’m a computer engineer and entrepreneur. My parents were teachers. I’ve always thought it was wrong that powerful software tools stayed locked up by hedge funds – widening the wealth gap instead of narrowing it.
That’s why I’ve made it our driving purpose at TradeSmith to level the playing field with Wall Street. And as I’ll show you today, we’ve built a new “Super AI” to help us do just that.
It scans billions of data points and projects prices for 2,334 stocks up to 21 days out – with 85% back tested accuracy.
And in a five-year study that included the pandemic, the 2022 crash, soaring interest rates, the tariff tantrum, and even two wars, it returned an average annual gain of 374%.
Next Tuesday, March 24, at 2 p.m. ET, I’ll reveal how this breakthrough takes AI-powered investing to an entirely new level during The Super AI Trading Event. (Save your spot here.)
Below, I’ll give you a sneak peek of how it works… along with some of the results it’s produced.
But first, I thought you might want to know a little more about TradeSmith.
Hedge-Fund-Level Tools for Regular Investors
We’re a leading financial technology company dedicated to empowering self-directed investors with powerful tools once available only to professional traders.
As CEO, I manage 74 researchers and developers – and an $8 million annual budget – to create world-class software tools and analytics.
We help more than 134,000 people around the world track about $29 billion in assets. Forbes, The Wall Street Journal, and The Economist have profiled us for our breakthroughs.
Even before ChatGPT burst onto the scene in November 2022, we were focused on harnessing AI to help our customers develop an even sharper edge.
In 2023, we launched our first AI-powered trading model, Predictive Alpha. It projects prices – up to 21 trading days out – for 2,334 stocks daily.
For some stocks, the price has hit its projection more than 90% of the time.
Our new Super AI pushes these results even further. It’s a genuine game changer, and I want as many people as possible to see it in action.
AI is already helping experts predict hurricanes, diagnose tumors, pilot fighter jets, and discover new medicines. Investors who use it to sharpen their edge will have a huge advantage over everyone else. Investors who don’t take advantage risk getting left behind.
Tracking Financial Butterfly Effects
By now, you’re probably familiar with ChatGPT, Gemini, and Claude. These are called large language models because they’re trained on massive datasets of words.
Think of our AI-powered trading system as a large numbers model.
Instead of words, it’s trained on sequences of historical values, including their irregularities, jumps, and volatility spikes.
The butterfly effects, in other words.
It looks at past data to guess when patterns are likely to happen again. It can spot a familiar trend in new numbers. And it keeps updating its guesses as fresh data comes in.
From the start, we knew it would become a lot more powerful, and we weren’t wrong. That leads me to the breakthrough I’m sharing with you today.
It allows us to capture market shifts faster and more accurately than ever before – giving regular investors access to hedge-fund-level precision.
The results speak for themselves.
Like Growing Your Money More Than 11 Times in a Year
For example, on March 9, 2026, our model flagged BHP Group (BHP) with a projected move of 2.1% over the next month.
We got in at $71.77 per share and predicted to hit our target gain by March 26.
And just one day later, the stock surged to $74.26.
My team closed the position for a 6.22% gain in just two days.
That may not sound extraordinary at first…
But when you annualize that return, it works out to an astonishing 1,135% annualized gain.
Traders using a special type of options trade could potentially have boosted that kind of move even further.
But as impressive as that is, we found you could have done even better with a five-stock portfolio strategy. There’s a lot of complex math going on under the hood, but you won’t notice it’s there.
You simply buy the best five trades – all with an unusually high 85% historical accuracy – and sell when they hit their prime projection date or price, whichever comes first.
As I mentioned, we’ve shown in back tests that this could have made you an average annual gain of 374% over the last five years. And that’s just the average gain. In 2024 alone, following this strategy would have delivered a 602% return.
That’s more than three times the return of AI rocket ride Nvidia (NVDA). And it’s more than 30 times the return of the S&P 500.
How to Predict “Hurricane Nvidia”
Every day, the market is flooded with billions of data points that represent rapidly changing economic conditions.
What traders are really trying to do is predict “Hurricane Nvidia”… “Hurricane Google”… “Hurricane Tesla.”
And what AI does best is spot order in chaos.
Hurricanes are formed from thousands of shifting forces working together. The same goes for markets. Old models break down under that complexity. AI models thrive on it.
I’ll reveal all on Tuesday, March 24 at 2 p.m. ET at The Super AI Trading Event.
I’ll show you the technology behind our new Super AI and the gains it’s flagged. I’ll also show why our five-stock strategy works – and how you can use it to build your own AI-powered portfolio to capture the market’s biggest short-term moves.
I’ll even share two of our AI’s top stock trades as a thank you for attending.
Here’s the link again to save your spot.
I hope to see you there!