Artificial Intelligence (AI) For IRA’s

Over 75% of daily stock activity is generated by computers.

Computer chess champions cannot beat winning computer chess programs.

Top AI systems can best any investor at trading.

The top performing managers use AI.

The Renaissance Medallion Fund is the father of quant investing earning over 100 billion dollars since 1980 and earning about 7 billion dollars a year over the past several years as reported in a new best-selling book entitled, “The Man Who Solved the Market”. This fund is the super predator of our age holding assets an average of two days.  If you have noticed the odd behavior of stocks over the past seven years you might just be trading against computers.

Bridgewater Associates LLC. Was the top performing hedge fund in 2018 and not everyone knew, but AI was a performance enhancer to the famed asset allocation management.

Point 72 Asset Management run by Steven A. Cohen is also a top performer using AI.

You can use a top performing AI cloud-based system to enhance your IRA performance. You may do it yourself or use a manager.  IRA’s are excellent because of their ability to compound trading gains without ordinary income taxation.

Trade-Ideas AI system named “Holly” has won recent awards for its excellent performance.

Holly is the only commercially available AI service that has delivered positive alpha over the past four years. Trade-Ideas has recently been awarded Best Machine Learning Development at Fund Intelligence’s 2019 Technology and WSL Awards. This was mostly due to the proven application of the technology to substantially outperform the S&P in 2018.

Holly is an artificial intelligence tool that generates active strategies each day to capture alpha.

The amazing part of its AI performance is that it closes out all trades by the end of each day.

Most recent performance figures will be published soon.

Go to: bit.ly2WcFAtM  for more info.

Go to: bit.ly/2VXgpq7  to see Trade-Ideas used by traders ( a free trading room) Opens at 9:00 AM EST and closes at 3:00 PM EST.

Holly is excellent for suitable IRA owners and for managers of Private Placement Variable Life contracts.

Each evening “Holly” makes millions of calculations, tests various filters and selects the best algorithms for the next day as shown above. The selected algorithms have the best win rates and PF calculations over the past 90 days. The PF means that for every dollar at risk the algo made 1.79 to 6.30. The investor can choose which of these algos to use for the trading day. Interestingly most of the profits are earned in the morning.

Holly can even direct the trades automatically.

Advisor’s Capital Investments Inc is one of the first advisors to use “Holly”.  Trade-Ideas sends prospective advisor clients to ACI for demonstration and training.

Advisor’s Capital Corp. offers educational training including “Holly” called Street Smart.

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Trade Ideas is a publisher. You understand that no content published as part of the Trade Ideas Trading Services constitutes a recommendation that any particular investment, security, portfolio of securities, transaction or investment strategy is suitable for any specific person. You further understand that none of the creators or providers of our Services or their affiliates will advise you personally concerning the nature, potential, value or suitability of any particular investment, security, portfolio of securities, transaction, investment strategy or other matter. Accordingly, do not attempt to contact them seeking personalized investment advice, which they cannot provide. To the extent any of the content published as part of the Services may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

You understand that the views expressed in the Trading Services are the authors’ own opinions. The Trading Services may contain opinions from time to time regarding securities mentioned in other Trading Services, and that those opinions may be different from those obtained by using another portion of the Trading Services. Trading in securities (including, without limitation, stocks, options, ETFs and bonds) involves risk and volatility. Past results are not necessarily indicative of future performance. Neither Trade Ideas nor any of its data or content providers shall be liable for any errors or delays in the content, or for any actions taken in reliance thereon. In addition, as markets change continuously, previously published information and data may not be current and should not be relied upon.

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To the extent any of our Trading Services involves a model portfolio or an actual portfolio of investments, as described below, such portfolio of investments is chosen by the author in accordance with their stated investment strategy. Your actual results may differ from results reported for the portfolio for many reasons, including, without limitation:

• performance results for the portfolio do not reflect actual trading commissions that you may incur;
• performance results for the portfolio do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results;
• the investments chosen for the portfolio may be volatile, and server, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time of the alert;
• you may not have the capital to trade as frequently as the portfolio;
• the size and timing of a subscriber’s purchase or sale of a stock may affect the price of the stock.
• certain of our products may contain a model portfolio that provides investment ideas and/or provides information regarding investments. Each product is available for informational purposes only. The information, research, and opinions contained in our products have been obtained or derived from sources believed to be reliable, but we cannot guarantee its accuracy and completeness, nor the opinions based thereon. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment. None of the information contained in our products constitutes or is intended to constitute a recommendation by us of any particular security or trading strategy or a determination by us that any security or trading strategy is suitable for any specific person. Investing in the stocks chosen in any of Trade Ideas’ products is risky and speculative. Trading in any security can result in immediate and substantial losses of the money invested. It is recommended that you only invest funds that are not allocated for other purposes, such as retirement savings, student loans, mortgages, education, or debt reduction.

Streetsmart is an investment management course focused on what is working in today’s markets. Over the past 10 years markets have changed significantly. Investors with 403b and 401k investments often do not recognize the higher level of risk they are taking as markets move higher. Stock investors may not be prepared to hold their own against institutional preditors with quant based systems and insider type advantages that may put them at a disadvantage. The Renaissance Medallion Fund is an example of a super predator that has been reported as making $7 billion per year with an average holding period of two days.

These quant investors are representing more than 70% of all trades.

Have you noticed that your very attractive fundamental stocks start to rise only to lose value very quickly for no apparent reason?

Have you owned a stock which dramatically declines on negative news. You sell to limit losses only to see it rise again right after you have sold it.

These predators feed off the habits of investors. They often know the headlines before you do and are prepared.

Follow the smart money using dark pool prints, option sweeps and AI computations that are just like counting cards at a casino. These tools may give you advantages ordinary investors do not have.

The course is provided in one hour increments on line. It is designed for both the 401k and 403b investor offering the ability to properly monitor and have a plan for risk control on retirement holdings and continues on for investors who spend much more time and money on investing. The courseware provides sophisticated investment information for individual investors, professional investors and investment advisors.

You can read more about these tools by reading the blogs on this website.

Streetsmart is offered by Advisor’s Capital Corp. the holding company of Advisor’s Capital Investments, Inc.

The initial one hour course is free.

Subsequent on line coursework is provided for $19.95 per hour. Based on the value you determine for yourself you may continue or not at your choice.

Learn about a stock pattern that has worked for 80 years with remarkable success. Using this pattern’s history it is possible to intelligently assess risk.

In today’s high market a heavy focus on risk control is needed. Be prepared for the opportunity and difficulties that lie ahead by assessing the value of new tools that are recently proven to offer an advantage for investors that embrace change.

Let us know if you would like an on line invitation as well as what time frames are best for you.

New article on the NASDAQ site. Go to https://www.nasdaq.com/articles/follow-the-money%3A-how-advisors-can-take-advantage-of-smart-moneys-big-moves-2019-11-06

I have been a student of the market and technician for over 50 years. I have focused on long term cycles in stock prices and industry sectors. The most powerful wisdom I have been able to garner has been the work I have done with Raymond Hanson Jr. Together we identified what I would call the lowest common denominator in identifying the beginning of a stock’s super cycle. Once the qualifying issues are identified and sorted into industry groups, the investor has a truly non random expectation of substantial long term gains. As it states in our book from 1977 , “The concept of cyclicality implies profits — Consistent, non random profits.” Using the logic in the study is simple. The rules are simple but the execution is not. Why? Because it runs against the tide of human greed, fear and impatience.

Anyone who has studied this work cannot deny the conclusions. In fact an institution has asked me to update my research to include the years 2003 – 2013. The results were absolutely amazing. I am willing to share my conclusions with any students of Non Random Profits.

Most of my career has been trying to find a way to make it easier for my investors to hold these issues long term. I have tried a lot of different strategies even attempting to insure client accounts if they held through the cycle. In my case the insurer did not work out.

Diversification, trimming positions on gains all helped, but investors find it difficult to hold lower priced stocks especially when market averages are rising and their portfolio is not rising as much. History has proven that the value of holding these issues for four or five years has been beyond expectations.

I have never given up trying to solve this issue. This has led me to use new technologies such as AI and specialized cloud based systems to help me lower investment volatility.

Today we are at the opposite pole from qualifying bottoming cycles in stocks and most industry groups. If you look at the long term charts of the major indices they are mountain charts not valleys. Everyone knows that stocks are high and risks are high, but greed is a force and staying the course is less difficult than making big changes. No one wants to miss out on the last 5%. This is why most investors lose in big declining markets. They listen to talking heads and believe fake news, propaganda and common beliefs which are not true.

If we must be invested I want to keep risks low on every asset we hold. Today we are in a pop and drop market. Nearly every stock that has a big pop drops again fairly quickly. The opposite also occurs where stocks drop quickly and then pop back up.

We can take advantage of this type of market but we must keep risk to a minimum on every issue we buy or sell. I use stop orders on every position usually less than 2% unless the stock is low priced where the potential is great and greater volatility must be accepted. The exception would be what I would call alpha stocks because they are driven by circumstances unrelated to the stock market like breakthrough biotechs or new technologies.

Follow The Money:

In a highly valued market there are unusual opportunities like takeovers, big court cases, FDA approvals. The reverse can be the case also like losing a patent suit or losing an extremely large customer or a debt issue that cannot be easily solved. Big money often knows about these issues before we do, so monitoring big money movement makes sense. ACI uses two sources to be early on following the money:

The Dark Pool

The dark pool is an institutional trading market where institutions trade with each other and often report their trades late. These trades can be monitored through Schwab and Lightspeed. Sometimes the institutions trade through their London facilities and may report a day or more late. Following the most massive trades and using technical tools can be a tremendous advantage.

View: https://youtu.be/6ciJOV9ulGw

Option Sweeps

Massive option buys are reported to us moments after execution by Trade-alert.com, a specialized institutional service. Buying or selling these stocks often leads to being an early investor especially when the trades are massive, covering all option exchanges and the size of the transactions are an odd numbers of options. This indicates that the buyer took every option available at this price. It is important that the buyer pays the ask price or higher and that the time frame is relatively short. Also the option call price plus the option premium should be a good amount higher than the current stock price if it is a buy. Many times we find out why later.

The Najarian brothers use this type of service and claim that it is their most successful method of finding profitable stocks.

Artificial Intelligence and Stock Scanners

We use Trade-Ideas LLC. services to find stocks that have high odds of capturing the attention of traders. These stocks could have a powerful news catalyst or have fast growing buyer interest as reflected in volume. Early in the morning the scanners pick up unusual activity in social media. Trade- Ideas AI system makes millions of calculations each night to find the algos that have the highest probability of success the next day. Then based on live stock activity the AI system gives buy and sell decisions in real time. It is like counting cards in a casino. You may find links to trade-ideas.com on this website. I would encourage you to learn more. After you use the link, go to the trade-ideas website at www.trade-ideas.com, click on trading room, set up a password and monitor their trading room for free. You will be amazed at the daily profitable activity that takes place there as traders use the scanners and share ideas. Other trading rooms cost as much as $4000 or more per year and they are no better.

I caution you that regardless of your investment experience it takes a year or more to learn these new skills and it can result in large losses until you have learned this art. The main skill is to keep risk low. Investment advisors will find this difficult because it is not what they are used to.

Our ideas come from these sources plus today we are looking for fully ripened stocks that have risen dramatically and now have an angle of increase that has become unsustainable. These are stocks for put buys or for shorting against call options.

To attempt to keep up with market indexes we use ETF’s during the day when markets are in uptrends. We use close stops for risk management. Keltner bands are used to assess the risk/ opportunity. For the past ten years buying at or below the low band and selling at or above the high band has worked well. Reverse index funds and put options help to reduce portfolio risk in market declines.

It is important to allocate appropriate to each position. A position should be sized so that an unexpected news item should not affect the portfolio more than 2% normally and on an oversized special situation not more than 5%. The risk/ reward is formulated by comparing the stop loss price to the opportunity calculated by the stock moving to the next resistance level attained from a daily chart. The risk/reward should be two to one or greater before making a trade.

High Alpha Stocks

High Alpha stocks are securities that are being repriced based on a new opportunity and not because of market conditions. Example would include breakthrough research by biotech stocks, new, exciting products in big market opportunities especially brand new technologies which may be unique.

A few high alpha small stocks we like are WRTC, VERI,WKHS, RADA, WPRT and AMRN.

Video link for YouTube on VERI: https://youtu.be/rM6qUd3zm1U

2nd Video:

https://youtu.be/nEEb1TZAOiw

Video on WRTC:

https://youtu.be/h8fg3DTPq5A

These stocks should be positioned sized small relative to portfolio values because the companies often need to invest heavily at a loss. They constantly need to issue stock for funding their expansion and based on history things take longer to develop than investors expect. These stocks are usually overpriced early as investors discover the opportunity. Fluctuations of 50% or more is normal per year. The key is to sell a portion when news is great and buy back shares when news is poor and the price is low.

Finally the greatest opportunities for outsized gains come from high alpha stocks out of favor and new issue stocks that have exploded higher when they first trade and then pullback and consolidate when the new shareholders are taking profits. This is happening every week lately.

There is a price to pay for taking less risk than the market. Generally the price is that at times you will underperform when markets quickly rise. You will hold high cash values overnight. When the markets open higher on news you will have low participation. You will not win on more than 50% of your trades because of risk protection. Your account drawdowns may be limited to 10% or so as compared to a growth account that has drawdowns of 50% or more. You should do far better when the markets go down substantially. You should outperform in a part of a portfolio when gold, silver or oil really moves a lot. You should outperform the market significantly when a high alpha postion really takes off on the upside.

Patience is key just like buying stocks that are 90% off their highs and consolidating require a lot of patience. I believe the major opportunities come to the prepared investor when big change occurs. If capital is protected, I believe big opportunity will come and return can be many times the amount earned by traditional investors. I have found that buying pull backs requires the investor to tolerate a lot of bumps in the road thus buying partial amounts makes sense. When stocks in demand make new highs the winners move extremely fast. The investors then need to trim their holdings and use a trailing stop to keep from giving back the initial profit. When the stock pulls back to a higher low it is okay to add to the position but the stock should not be held if it declines below the previous low.

In summary ACI offers services that are designed for an overpriced high risk market. Tight risk controls are employed as well as the opportunity to benefit from oversized returns on high alpha stocks and new issues. A real opportunity exists to benefit from the next major market decline as well as an opportunity to benefit from counter cyclical opportunities like silver, gold and oil, both long and short. The opportunity to gain in today’s market is present using index ETF’s long and short to benefit if the markets continue to act as they are today before a major decline. To use all of our tools clients need to be suitable, experienced and have a margin account not for leverage but to avoid having to wait for settlement to make a new trade and to be able to sell on the same day as a purchase when a stock doesn’t rise as expected. IRA accounts are best and $100,000 or greater account size is helpful.

Of course past performance is no guaranty of future results. Risk is a necessary part of investing and ETF’s have their own risks. For more information see our disclosure documents and ask for a prospectus to learn about specific ETF’s and their risk disclosures.

AI is proving a successful tool in the money management business.

Artificial neural networks can absorb massive amounts of data, think faster and learn from subtle changes faster than a human can.

Large companies have invested vast sums in AI to help them dominate their target markets.

You have seen IBM’s ad showing its artificial intelligence system named Watson.  Amazon is using artificial intelligence to dominate consumer markets.  Salesforce.com uses AI to help its clients dominate competition.

The Renaissance Medallion Fund has achieved a new level of dominance and success reported by Bloomberg but it is no longer available to outside investors.

Bridgewater Associates, LLC long known as an asset allocator  managed the top performing hedge fund in 2018.  Guess what?  This manager is much more sophisticated than one would consider an asset allocator to be.  AI is a core contributor to Bridgewater’s incredible success. 

As an advisor without 300 PhD’s constantly working to build the ultimate AI system like the Renaissance Medallion Fund what can you do to compete?

Thankfully, you do not have to compete directly with these two great managers.  The bulk of your competition are much less sophisticated in terms of AI.

Also, you do not have to invest tens or hundreds of millions of dollars to successfully implement AI into your practice.

Trade-Ideas, LLC is the only commercially available AI service that has delivered positive Alpha over the past three years and even smaller advisors can afford the subscription.

Trade-Ideas has recently been awarded Best Machine Learning Development at FundIntelligence’s 2019 Technology and WSL Awards.

Investors, advisors, traders and hedge fund managers are becoming aware of Trade-Ideas, LLC which ranks number 3,012 on the 2018 INC 5000 with  three year sales growth of 134%.

Recently, Trade-Ideas has implemented a specialized service for advisors only, named Trade-Ideas Wealth for Professionals. This service offers access to the Trade-Ideas AI System called “Holly” together with tested algos available daily plus the ability to custom design and test algos designed to fit your specifications. 

Implementation requires training and some hand holding.  This new service provides elements of both.

Trade-Ideas Wealth for Professionals offers:

• Professional portfolio analysis
• Subscription comes with a description of the algorithms and the configuration settings of each study optimized.
• Dedicated portfolio channels which focuses on current holdings.
• Helpful videos for training.
• Periodic newsletter .
• Daily hand picked “Holly” trades designed for portfolios.
• Market observations and tests of developed strategies.
• Professional only webinars and  weekly Squawk Box Hour.
• Semi-annual portfolio/current holdings analysis.
• Access to TIQ to create custom algos not capable of being modeled otherwise.

Trade-Ideas, LLC services are designed to produce positive alpha for you and your clients, but in addition this power allows you to differentiate your firm from your competition.

This new service is useful for both large and small advisors, but small advisors can be very nimble and can execute risk management in a way that larger advisors may not be able to do as well. All advisors can find emerging industry sectors and high alpha stocks more rapidly using Trade-Ideas. Trade-Ideas professional value proposition is:  “We seek to deliver for market professionals consistent, non random, opportunities to capture alpha.”

This is a strong money ball analogy here:  “No man is better than a machine and no machine is better than a man with a machine.”  Paul Tudor Jones.

There is much more to discover about Trade-Ideas, LLC and its services. Go to bit.ly/2WcFAtM