Lucas Barrington🅰🅰🅰

My team and I organized a research and due diligence trip this week. I'll be sharing updates on our progress next week. Stay tuned

This weekend’s news will be critical, as we expect clear signals regarding the trade negotiations with China, which will definitely present some opportunities. As of now, it is confirmed that restrictions on Nvidia chips will be partially lifted, while other details remain unverified. I will compile and analyze this information next week and share the insights with our premium subscribers

Today’s primary profit opportunity lies in Gold, which aligns perfectly with my call from a few days ago. Gold is down 2% with a price swing of nearly 200 points. For our quantitative strategy, this is the prime opportunity to capture short term alpha

Go long on SPY today at 738-739, with the TP target set around 743 $SPY

The market opened lower today as an early reaction to Walsh taking office. I already told you on Monday, so don’t be surprised. Don’t sell any of your stocks just because they’re down a low open is likely to rebound

Alright, I have a few things to take care of later. Big market moves tomorrow don’t miss out!!!

Because the longer you hold a position, the greater the risk. So during a downtrend, it keeps taking profits, then opening new short positions, profiting again, and taking profits again repeating this process continuously

Take a look at your demo or real account trade history. Using today’s market as an example even in a one sided downtrend, it never holds a position from the beginning all the way to the end of the move

So how does it actually make money through probabilities? If the strategy has a win rate above 50%, that means out of every 100 trades, more than 50 are profitable you come out ahead. As long as you have enough trades, your profits will accumulate

So it won’t drag down the entire account. Those of you who have traded futures or forex know how important this is. Most of you probably haven’t experienced a margin call or blown account

Once a trade goes against you, it will automatically stop out with a small loss usually just a few to a few dozen dollars

Those of you using demo accounts or who have been making profits in real accounts over the past couple of days may have noticed this: for example, if your account has $100K, the strategy typically uses less than 10% of the capital in trades. Most of the time, the funds are dynamically adjusting positions based on market movements adding positions, reducing exposure, scaling in, and so on

In addition, if the market continues to trend up or down, how should the strategy adjust should it increase or decrease the frequency of opening positions? This all comes down to how risk is managed

This requires proper position management for example, deciding when to cut losses on short positions if the market rises, when to add to long positions, how much to allocate, and at what profit level to take gains. That’s the key

But AI strategies are differentthey make money based on probabilities. What does that mean? For example, when trading SPX, the market is broken down into countless tiny price segments like 7501.01, 7501.02. It doesn’t try to predict direction. Instead, you’ll see it going both long and short at the same time when the market rises, the long positions profit; when it falls, the short positions profit. Sounds simple, right? But it’s not

We need to determine the direction first whether to go long or short. Only if we get that right can we make a profit, just like when you trade SPY. The second step is holding the position long enough for enough movement. For example, if you go long SPY at 740, the price needs to rise above 743 for you to make a profit

Alright, I understand your concerns it may seem like the returns are almost too good to be true. Let me explain how AI driven strategies make money. It’s completely different from manual trading

So in reality, the market is collectively choosing to ignore the risks right now, with capital continuing to pile into semiconductor plays. Valuations don’t seem to matter, nor whether future gains are being pulled forward it’s all driven by sentiment and strong FOMO

With sentiment, themes, earnings, and the potential for major players to further expand their market share all aligning, the market has pushed to new highs again effectively masking the underlying risks from Friday