What this ONE rule says about the stock market

What I did is take the 20 largest stocks by market cap and used Portfolio Boss to reverse-engineer the same set of rules to trade all of them. Part of that rationale is that A.I will likely make these mega caps even larger.

The test was from 1993 and included two out of sample periods to verify we're not over-fitting to the past.

There were no losing years, and the big bear markets like 2000-2002 and 2007-2009 did just fine.

I know when I teach traders what works in the markets, they are utterly surprised.

Trading isn't rocket science. Less complicated nearly always wins. Occam's Razor reigns supreme when it comes to delivering real results in steady fashion over the years.

You may be surprised to know that the strategy is currently 60% in cash.

Most mega cap stocks are simply not in the proper setup right now. Are your favorite stocks like NVDA still on a buy signal?

Judging by the performance of this ONE indicator, I'd say that it holds a lot more weight than any talking head on the news, or the gurus that “know” what's going to happen next with Iran.

There IS signal in the charts, but based on the one rule that works across all these stocks — the chartist haven't figured out the markets and are largely backwards to the brutally honest truth.

Machine learning discovers the truth…and the truth is what makes money.

P.S. I'm currently judging whether or not to release this strategy to the public. Let me know if you're interested in this quick 30-second survey >>