{"id":23786,"date":"2025-04-18T07:30:00","date_gmt":"2025-04-18T11:30:00","guid":{"rendered":""},"modified":"2025-08-22T08:20:59","modified_gmt":"2025-08-22T12:20:59","slug":"how-to-use-ai-to-find-winners-and-avoid-losers-during-a-market-crash","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/how-to-use-ai-to-find-winners-and-avoid-losers-during-a-market-crash\/","title":{"rendered":"How To Use AI to Find Winners and Avoid Losers During a Market Crash"},"content":{"rendered":"<div class=\"card card-body bg-light mb-4 mt-4\">\n<p><strong>Managing Editor\u2019s Note:<\/strong>\u00a0The beauty of AI is\u2026 it\u2019s not human. It doesn\u2019t feel fear\u2026 or greed. It doesn\u2019t get embarrassed or let its pride get in the way of good decision making. And it feels no need to keep up with talking heads.<\/p>\n<p>It just rationally charts the best course based on the information it\u2019s fed.<\/p>\n<p>Keith Kaplan, CEO of TradeSmith has been using AI to navigate the chaotic trade war market. Given the great unknown of what comes next, we think you should use every tool you can get.<\/p>\n<p>Below, he shares some of the details on the AI tool he and his team have developed to help you invest profitably in this kind of environment.<\/p>\n<p>He also hosted a briefing called\u00a0<strong>The AI Predictive Power Event<\/strong> on Wednesday where he explained more\u2026<\/p>\n<p><strong>If you missed it, you can catch the replay <a href=\"https:\/\/secure.tradesmith.com\/?cid=MKT830226&amp;eid=MKT836319&amp;step=start&amp;plcid=PLC227167&amp;SNAID=%25%25SNAID%25%25&amp;email=%25%25emailaddr%25%25&amp;encryptedSnaid=%25%25ENCRYPTEDSNAID%25%25&amp;emailjobid=%25%25jobid%25%25&amp;emailname=%25%25emailname_%25%25\">right here<\/a>. <\/strong><\/p>\n<\/div>\n<h2 class=\"wp-block-heading\">How to Use AI to Find Winners and Avoid Losers During a Market Crash<\/h2>\n<p><strong>BY KEITH KAPLAN, CEO, TRADESMITH<\/strong><\/p>\n<p>It\u2019s tough not to overreact during wild market swings.<\/p>\n<p>By now, you\u2019re probably receiving as many emails as I am from the <em>New York Times<\/em>, <em>TIME<\/em>, <em>CNBC<\/em>, and more all giving updates on the state of the stock market \u2013 sometimes multiple emails in an hour.<\/p>\n<p>It\u2019s especially tough because this downturn is happening nearly to the day of the 2020 COVID crash.<\/p>\n<p>That\u2019s an unpleasant dose of d\u00e9j\u00e0 vu.<\/p>\n<p>But at TradeSmith, we\u2019ve learned that not every chunk of bad news means doom for your portfolio.<\/p>\n<p>In fact, volatility like we\u2019ve seen presents a massive opportunity&#8230;<\/p>\n<p>It\u2019s all built on a technology we\u2019ve heard about nonstop for the past two years: artificial intelligence.<\/p>\n<p>And this AI trading algorithm could tell you exactly which stocks could turn a quick profit over the next month \u2013 while also showing you which to avoid.<\/p>\n<p>This is AI\u2019s time to shine&#8230;<\/p>\n<p>Let me show you why.<\/p>\n<h2 class=\"wp-block-heading\">The Power of AI Forecasts \u2013 Especially in Volatile Markets<\/h2>\n<p>Let\u2019s borrow a page from Major League Baseball (MLB)\u2026<\/p>\n<p>A batting average is one of the key indicators of a player&#8217;s hitting ability.<\/p>\n<p>But smart teams don\u2019t just look at a single season\u2019s numbers; they analyze historical trends, power stats, and other advanced metrics to predict who will excel at the highest level.<\/p>\n<p>Consider these two players:<\/p>\n<ul>\n<li>Player A hit .281 last season and smashed 37 home runs.<\/li>\n<li>Player B hit .189 last season and managed only five home runs.<\/li>\n<\/ul>\n<p>If you were building a team, which player would you bet on to deliver results? The answer is obvious.<\/p>\n<p>That\u2019s because past performance has predictive power. It doesn\u2019t guarantee future success, but it signals which players have a higher probability of thriving.<\/p>\n<p>Investing operates on the same principle. You want to stock your portfolio with strong performers \u2013 companies poised for sustained growth. And just as importantly, you want to avoid the losers before they drag down your portfolio.<\/p>\n<p>That\u2019s what TradeSmith&#8217;s proprietary AI trading algorithm, dubbed \u201cAn-E\u201d (short for Analytical Engine) is designed to do&#8230;<\/p>\n<p>In 21 trading days or less.<\/p>\n<p>Here\u2019s how&#8230;<\/p>\n<h2 class=\"wp-block-heading\">A Market Meltdown Is No Match for An-E<\/h2>\n<p>Take <strong>Dropbox Inc. (DBX)<\/strong> as a real-world example&#8230;<\/p>\n<ul>\n<li><strong>Price at the Time of Projection<\/strong>: $25.90<\/li>\n<li><strong>Projected Price<\/strong>: $27.03 by April 2, 2025<\/li>\n<li><strong>Confidence Gauge<\/strong>: 75%<\/li>\n<\/ul>\n<p>This trade signal was generated on March 3, 2025, with a projected price increase of 4.27%.<\/p>\n<p>You\u2019ll see that An-E gave the reading a \u201cconfidence gauge\u201d of 75%, signaling An-E&#8217;s conviction level of its own projection.<\/p>\n<p>Now, a 75% confidence level isn\u2019t better than 65%, nor is it worse than 90%. A higher confidence level simply means that the algorithm anticipates a higher likelihood of a stock hitting the price it projected.<\/p>\n<p>And to prove it \u2013 21 trading days later, DBX saw a 6.19% gain, effectively crushing the original forecast by nearly 45%!<\/p>\n<p>That\u2019s just one example out of thousands of stocks An-E analyzes and creates projections for every day.<\/p>\n<p>Consider another one in the same time frame: <strong>AAON Inc. (AAON)<\/strong>.<\/p>\n<ul>\n<li><strong>Price at the Time of Projection<\/strong>: $73.51<\/li>\n<li><strong>Projected Price<\/strong>: $79.74 by April 3, 2025<\/li>\n<li><strong>Confidence Gauge<\/strong>: 62%<\/li>\n<\/ul>\n<p>While the confidence reading on AAON\u2019s projection was lower than DBX\u2019s, it still hit nearly on target&#8230;<\/p>\n<p>By its target date of April 3, 2025 \u2013 yes, the day the market took its first downturn following the tariff trauma \u2013 AAON hit $79.16. A mere 58 cents off&#8230; and a resounding <em>win<\/em>.<\/p>\n<p>This shows you something important: <strong>An-E doesn\u2019t need calm waters to find winners<\/strong>.<\/p>\n<p>Just like a good scout doesn\u2019t flinch when a player is in slump, An-E focuses on the signals that matter.<\/p>\n<p>And right now, An-E\u2019s bearish forecasts are just as sharp&#8230;<\/p>\n<p>Let\u2019s look at one last example: <strong>Dolby Laboratories Inc. (DLB)<\/strong>.<\/p>\n<p>When the market looked shaky, An-E scanned the data and flagged DLB as vulnerable.<\/p>\n<p>Here\u2019s how it played out&#8230;<\/p>\n<ul>\n<li><strong>Trade Signal Issued<\/strong>: March 6, 2025<\/li>\n<li><strong>Price at the Time of Projection<\/strong>: $82.50<\/li>\n<li><strong>Projected Price<\/strong>: $71.85<\/li>\n<li><strong>Projected Drop<\/strong>: -12.91%<\/li>\n<li><strong>Confidence Gauge<\/strong>: 63%<\/li>\n<li><strong>Actual Price After 21 Trading Days<\/strong>: $72.49<\/li>\n<li><strong>Actual Drop<\/strong>: -12.13%<\/li>\n<\/ul>\n<p>Once again, An-E nailed the forecast with amazing accuracy \u2013 even when the broader market was swinging wildly.<\/p>\n<p>This isn\u2019t just about finding what to buy.<\/p>\n<p>It\u2019s about knowing what to dodge \u2013 and when to get out before things go haywire.<\/p>\n<h2 class=\"wp-block-heading\">An-E Is Coming<\/h2>\n<p>The recent tariff news caused a sharp market correction.<\/p>\n<p>Some stocks will rebound \u2013 but others are headed for a steeper fall. And here\u2019s the thing: Most investors won\u2019t know which is which until it\u2019s too late.<\/p>\n<p>But with An-E on your side, the odds of you finding more winners and avoiding more losers is higher than before.<\/p>\n<p>That\u2019s why TradeSmith held an <strong>emergency briefing on Wednesday<\/strong> \u2013 called <strong><em>The AI Predictive Power Event<\/em><\/strong>. The briefing explained exactly how this tech works\u2026 and how it can guide you through today\u2019s market storm.<\/p>\n<p>Because the bottom line is, we\u2019re in the middle of the most dramatic global trade shift \u2013 and the markets are feeling the heat.<\/p>\n<p>But just like a great MLB scout can still find future Hall-of-Famers in a losing season, An-E can still find winning trades in a down market.<\/p>\n<p>Whether you\u2019re playing offense by targeting winners or defense by avoiding losers, An-E gives you the clarity you need when it matters most.<\/p>\n<p><strong>If you missed Wednesday\u2019s briefing, you can catch the replay for a short time <a href=\"https:\/\/secure.tradesmith.com\/?cid=MKT830226&amp;eid=MKT836319&amp;step=start&amp;plcid=PLC227167&amp;SNAID=%25%25SNAID%25%25&amp;email=%25%25emailaddr%25%25&amp;encryptedSnaid=%25%25ENCRYPTEDSNAID%25%25&amp;emailjobid=%25%25jobid%25%25&amp;emailname=%25%25emailname_%25%25\">right here<\/a>. <\/strong><\/p>\n<p>Sincerely,<\/p>\n<p>Keith Kaplan<\/p>\n<p>CEO, TradeSmith<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here&#8217;s how to avoid overreacting during wild market swings.<\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[118],"newsletter-type":[],"ticker":[],"class_list":["post-23786","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-keith-kaplan"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=23786"}],"version-history":[{"count":3,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23786\/revisions"}],"predecessor-version":[{"id":25022,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23786\/revisions\/25022"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=23786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=23786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=23786"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=23786"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=23786"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=23786"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=23786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}