Growing up on a Midwestern farm in the 1970s and 1980s doesn’t scream tech guy, but that’s where it started for me.

In first grade, I got my first computer—a TI-994A—amid corn fields and cattle in rural Michigan.

I learned what I could as quickly as I could, which at the time made me an expert.

That leg-up made me the IT guy for my school district by second grade. Teachers had these computers (like 3) but had no idea what to do. I would get the computers set up and load The Oregon Trail, and students could at least get some experience learning what a computer could do.

That love I developed for technology early on stayed with me my entire life.

I eventually started a computer business. Coupled that experience with my fascination for stocks.

Once algorithms hit the scene, there was an explosion of opportunity to develop cutting-edge tech tools for everyday investors like you.

With AI now part of that toolset, the opportunity set for traders has gone absolutely Super Nova.

Algos Gone Wild

The trading world began its transformation with the mainstream arrival of trading algorithms around 2015-2016.

These algorithms changed the game, especially in penny stocks.

Traders could now systematically identify and exploit short squeezes, marking a sea change in trading from a short-biased to a long-biased market.

It worked like this.

Traders could use algorithms to compare the stock’s float to its volume and find prime targets to lure in short sellers thereby setting up a short squeeze.

They would bid up the targeted stock on pre-market and then yank the bid to let the stock price pull back at market open, thereby baiting short sellers into the stock.

Once short sellers hammered the stock, traders would pile back in, bid up the stock, and sell into the rally created by short sellers panic buying to cover their shorts.

The resulting price action was the genesis of the dip-and-rip pattern that we’ve been using ever since.

And the inspiration behind our incredibly successful trading tool, the Oracle Algorithm.

We designed it to identify optimal trading opportunities by recognizing patterns typical of short squeezes. It has become a foundational element of our trading strategy, helping traders navigate the increasingly algorithm-driven market.

If you haven’t added it to your StocksToTrade platform, click this link to do so now.

AI represents the next step in the evolution of trading algos, of course.

And I.R.I.S. is our groundbreaking AI model that can provide stock ratings, analyze charts, and even help with risk management.

Traders today have an incredible number of tools at their disposal. To learn more about my top three, including Oracle and I.R.I.S., check out my video below.

 

Until next time,

Tim Bohen

Lead Trainer, StocksToTrade

 

*Past performance does not indicate future results