Why It’s Time to Fire Your Financial Advisor VIEW IN BROWSER By Michael Salvatore, Editor, TradeSmith Daily In This Digest: - Today, the way you trade changes forever
- AI is coming for your financial advisor
- 10 minutes a week to follow this simple, powerful strategy
- We optimized one key datapoint to beat the market by 23x on average
- The “worst” year would’ve more than tripled your money
- The game has changed: either play or get played
More than 9,000 of your fellow readers joined our CEO Keith Kaplan for the event. This was the most important broadcast in TradeSmith’s 20-year history. After years of research and development, we’re launching the AI Super Portfolio. It’s a way to trade the markets unlike anything you’ve seen before. By holding a portfolio of five stock positions our AI algorithm flags, our backtesting shows you could have made an average annualized return of 374% over the last five years. And that’s over a period that includes the pandemic, the 2022 crash, the 2025 tariff crash, two wars, and swings in interest rates. No options, no leverage, and no gimmicks. Today, let’s look at why this is an era-defining moment for individual investors looking to level the playing field with Wall Street. I’ll also show you the single variable that feeds our price forecasting engine and drives its success. And by the end, you’ll learn what you missed in today’s launch presentation and why you need to tune in now. | Recommended Link | | | | Nvidia’s own customers could soon become fierce competitors, dethroning the AI Chip King. But there’s a critical component that AI data centers need just as badly as chips. The demand is so massive that a single data center uses enough of it to stretch around the earth eight times. While the media hypes up AI chips, the smart money has found the next big thing. Discover Futurist Eric Fry’s “Nvidia-killer” stock ideas. Click here for complete analysis. |  | | First, it’s finally time to fire your financial advisor… Here’s our CEO Keith Kaplan with some key background information on what’s been happening in AI… In high-level science and math tests, ChatGPT’s o3 reasoning model is already performing on par with the world’s rare “super geniuses.” It scored 25% on the FrontierMath benchmark – a test of extremely difficult math problems. Before o3, the best AI score was 2%. The o3 model also scored 2,727 on Codeforces, a competitive programming platform. That puts it above 99.8% of human coders worldwide — equal to the very best 175 humans alive. Think about that… Three years after the launch of ChatGPT, it’s already better at math and coding than most of the smartest humans alive. And for decades, math and coding have been the core disciplines of the world’s most successful investors. - For example, Jim Simons’ Medallion Fund used math and programming rules to produce average annual returns of 66% before fees since it launched in 1988.
- Or take Ken Griffin’s Citadel. It uses quantitative models to exploit short-term market efficiencies. Across all its funds, this approach has earned its investors 19.5% annualized since it launched in 1990.
- Or going back even further, Ed Thorp used a similar approach where he used statistics to identify pricing errors. That strategy earned his fund, Princeton Newport Partners, average annual returns of 20% over 28 years.
AI is making this approach to trading all the more common. Soon, AI investment analysts will become the norm… and they’ll be smarter than the human investors. Back to Keith… The world is about to be flooded with AI systems that are 100 times smarter than the best human analysts. They never sleep. They crunch numbers 24 hours a day, seven days a week. And markets are nothing but numbers: GDP changes, interest rates, company revenues, stock prices, options data. Now at TradeSmith, we’re leading the pack with the first AI investing model for regular investors – the AI Super Portfolio. It starts with our Predictive Alpha Prime algorithm… If ChatGPT is a neural network for words, Predictive Alpha Prime is its numerical counterpart. It makes predictions of the next most likely number in a sequence after being trained on vast troves of stock market data. All stocks have a Prime forecast. It shows you: - The optimal amount of time to hold that stock for the next one to 21 trading days
- Where the stock is forecast to go in that time
- And how often it’s hit the target price in the past.
Here’s one example out of thousands from our database – the Prime forecast for Tesla (TSLA): 
Predictive Alpha’s 20-day Prime forecast for TSLA projects the price to be more than 7% higher by Nov. 11. Historically, the Prime forecast has been accurate nearly 94% of the time for the stock. Now, imagine all stocks with a Prime forecast that have a historical target accuracy of 85% or more are put into a basket. Right now, that’s well over 2,000 stocks. You wouldn’t want to trade thousands of stocks at once – that’s too complicated. But you would want to trade the best of the best. The AI Super Portfolio finds the best of the best by optimizing for just one variable: the daily price change. It uses machine learning to look back through the price history of all these tickers and finds the ones with the biggest, most consistent moves. Like a butterfly flapping its wings in one corner of the Earth causing a typhoon on the other… it crunches billions of data points to find the small initial moves that correlate with outsized gains. The result is a rotating list of five positions – what Keith called “perfect trades” during this morning’s event. When you trade the AI Super Portfolio, you simply buy each of these five trades in equal measure and hold each of them for their Prime forecast. Once the forecast is up, you sell the position and put the resulting capital back into the next one. This approach takes, on average, about 10 minutes a week. But those 10 minutes have the potential to change the way you invest forever. Beating the market is so hard because of this… The annual S&P Indices Versus Active (SPIVA) Scorecards report found that 65% of actively managed funds failed to beat the market in 2024. And earlier estimates found that, over the long run, somewhere between 80% and 90% of institutional investors failed as well. These are professional investors – people that get paid to make money in the stock market. Stock picking is just as tricky. A study from S&P Global shows that about four-fifths of S&P 500 stocks trail the index. I lay this all out as an important backdrop of the results of trading the AI Super Portfolio. Without using any leverage, our backtesting shows it beat the market by 23x on average over the last five years. Last year, it returned 602%. That’s more than 25 times the return of the S&P 500. And in 2020, the worst year in our backtest and the year that saw global economies shuttered due the pandemic, it returned 238%. 
How can this be possible? Chiefly, the strategy is totally systematic and follows precise rules. It’s not driven by fear, greed, or any other emotion that plagues human decision-making. That’s the big advantage AI has over investors, no matter their experience. An AI doesn’t feel the pull to sell at the worst time or buy at the top. It just sees the next number in the sequence and makes the cold, calculated best bet. If you’re skeptical, I get it… AI is a new technology. And these are bold claims. But the simple fact is, we’ve harnessed the power of AI and machine learning to give our subscribers a chance at the best returns the market has to offer… We set out to replicate, maybe even beat, the results of RenTech’s Medallion Fund. But we wound up leaping past them. We’ve proven that the age of financial AI isn’t some long-shot idea that’s still years away. It’s here. It’s changing the game of investing. And your only options are to play the game… or get played by everyone else who starts early. This project is the mission of TradeSmith made manifest. That’s why Keith got on camera today to walk you through how it all works in detail. This morning, he: - Issued a major warning about Oct. 22, the first such warning since he called the Liberation Day crash back in January
- Showed exactly how TradeSmith invented the Super AI Portfolio and why it takes just 10 minutes a month to use it and beat the market
- Gave two free trade recommendations driven by our AI algorithms (one stock, one option)
The live broadcast is over, but you can watch a replay here for a limited time. Now is the perfect time to catch up, get involved – and be ready for the Super AI Portfolio to come your way. The first trade alerts will hit subscriber inboxes tomorrow morning at 7:30 a.m. ET. To building wealth beyond measure, 
Michael Salvatore
Editor, TradeSmith Daily [Disclosure: Michael Salvatore held shares of TSLA at time of writing.] | 
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