It’s All About Sputnik!

Does the word Sputnik mean anything to you?

Sputnik was the first Earth-orbiting satellite, which was launched into space by the Soviet Union on October 4, 1957.

That moment, launched the Space Race.  And it reminded everyone on Planet Earth about the great frontier of space and how technology would need to advance to be able to successfully explore it.  Historians refer to that as Americas Sputnik moment.

I claim, that trading the markets is no different.

There is risk.

But there are huge potential rewards for those who understand risk and recognize that technology continues to advance in assisting traders and giving them that added edge..

Here is the trillion-dollar question.

How do “YOU” define risk?

Charlie Munger is Warren Buffets’ partner at Berkshire Hathaway. One of my favorite Mungerisms is “knowing what you don’t know is more useful than being brilliant.”

That statement, on the surface, sounds folksy, but it is deeply profound.

As a trader,  risk is very clearly defined by recognizing that your knowledge will always be limited by what you see and hear and understand.

But what you see, hear and understand represents a very small universe of what actually moves markets. 

This is why intermarket analysis and artificial intelligence are a necessity for today’s trader.

They quantitatively isolate the key drivers of an assets price to provide an accurate trend forecast.

Our forecasts are up to 87.4% accurate, one to three days in advance.

These technologies were specifically developed to minimize risk and forecast trends by applying the Scientific Method towards very difficult engineering problems.

They allow a computer to be trained through tens of thousands of simulations to determine the best move forward, clearly outlining the probability of success and failure.

Usually, a trader will have a Sputnik moment when they experience a huge drawdown in their trading account. 

They recognize that something has to change if they want different results.

That drawdown is a stark reminder that as a trader you clearly did not understand RISK!

 

Kai-Fu Lee is a leading Technologist, former President of Google China, and author of “A.I. Superpowers.”In the opening chapter of his book, he describes how the entire country of China had their Sputnik moment on May 23, May 25 and May 27 of 2017.

On those three days, Google’s a.i. driven AlphaGo software challenged the nineteen-year-old world champion Go player, Ke Jie to a best of three games tournament.

Go is perhaps the oldest board game in the world.  It is played on a 19 by 19 grid.  The purpose of the game is to capture as much territory or (stones) points as possible.  The game is extremely strategic and offers an almost infinite number of strategies and tactics which can be implemented.

The purse for this tournament was $1.5 million dollars for the winner, and $300,000 for the loser.  This event was televised throughout the entire country of China.

Kai-Fu Lee writes:

“But on this day AlphaGo wasn’t just beating  Ke Jie – it was systematically dismantling him.  Over the course of three marathon matches of more than three hours each, Ke had thrown  everything he had at the computer program.  He tested it with different approaches:  conservative, aggressive, defensive, and unpredictable.  Nothing seemed to work.  AlphaGo gave Ke no openings.  Instead, it slowly tightened its vise around him.”

The final result – the artificial intelligence powered AlphaGo won all three matches, and China awoke to the incredible power of artificial intelligence.

Artificial intelligence has defeated humans at Chess, Poker, Jeopardy and now Go.

Why should trading be any different?

How good are you at making profitable trading decisions?

How do you think you compare to a.i.?

The main problem of trading is the organization of information so that effective decisions can be made.

Do you really think you can effectively evaluate thousands of stocks, and determine which ones have the greatest statistical probability of success?

What has your performance been like over the past year?

I’d love to show you a handful of your favorite charts that will allow you to have your “Sputnik” moment and change the way you analyze and trade the markets forever!

I invite you to check it out at our Next Live Training.

It’s not magic.  It’s machine learning.

Make it count.