One Simple TradeSmith Graph Gives You a High-Probability Edge

By Mike Burnick

Certainty. That’s what every investor craves.

It’s the holy grail of finance everyone is searching for. Of course, certainty doesn’t exist in markets, but we’ve done the next best thing.

TradeSmith designed and created a system to analyze investment probabilities and stack the odds of success firmly in your favor.

We call it the “probability of profit,” or POP for short.

And this powerful idea became the basis of a breakthrough system called Constant Cash Flow, which has compiled a 99% win rate in real-time trades over the past 15 months.

Just a few weeks ago, the Constant Cash Flow service closed out 17 winning trades in a single day, generating $975 of income.

So far this year, we’ve had 197 winning trades out of 199 closed trades.

And while there were a few trades that didn’t go our way, that still adds up to a 99% win rate and $10,238 in total income earned.

Just imagine how differently you’d invest if you could be certain that you’d have a high probability of making money like this.

The POP algorithm at the heart of Constant Cash Flow doesn’t make trades for you. You’re always in charge of your investments.

But it does give you a high-probability edge with every trade you make. We do all the “heavy lifting” for you by finding the No. 1 best trade opportunity every single day.

POP looks at millions of data points over thousands of stocks. It uses historical data to determine the probability of a positive outcome… giving you confidence you’ve never had while placing a trade.

And a significant Wall Street-style advantage over everyone else.

That’s because we are constantly improving and upgrading the POP system. In fact, we have spent over $22 million building out our infrastructure. And that’s why it’s become our most powerful investment tool by a long shot.

Today I want to show you exactly how it works and how easy it is to find potential moneymaking trades with this tool every day of the week.

Here’s a peek at an actual trade alert emailed to Constant Cash Flow members in June.

Just three data points at the top of each trade email are all you need to confidently take advantage of each trade:

And that little graph underneath… that’s the secret to our 99% success rate, as I’ll explain next. Here is the exact option trade that members received via email:

Sell ELF $175.00 Put Expiring 12 July 2024

You can easily find this e.l.f. Beauty (ELF) option in your online broker account. Or you could simply call your broker on the phone and read this to him verbatim.

Now, let me explain the TradeSmith option analytics that put the odds in your favor.

  1. Probability of Profit (POP). Our proprietary algorithm sorts through thousands of stocks, and tens of thousands of options, to find the handful of options with the highest odds of success.

    In this case, an 81% probability of profiting from this ELF option trade by expiration date.

  2. Return on Investment (ROI). This algorithm tells you exactly what your expected return will be on the trade, in this case 3.31%. And this return is much higher than you may realize at first glance.

  3. Max Profit. In this case, earning $60 of income for each option contract sold works out to a 3.31% ROI (for traders doing this in a margin account, of course).But remember: That’s 3.31% in just 23 days – from the time this trade was sent on June 19 to the July 12 option expiration.

    If you place a similar trade just once a month, the $60 profit per trade adds up to a potential gain of $720, for a 47.8% return on investment over a full year. So, about five times what the S&P 500 typically gains in a year.

And if a picture is worth a thousand words, this simple graph certainly is. It’s our exclusive price forecast graph for the underlying stock – in this case, ELF:

This is the secret to Constant Cash Flow’s success. It shows you visually just how high the odds of winning are for each trade.

Your breakeven price for the put option at expiration is marked with a solid horizontal line.

The shaded blue areas are our price-range forecast for ELF from now until option expiration (dotted vertical line) and beyond.

Our algorithms sift through all sorts of fundamental and technical data, seasonal trends, and trading cycle patterns for every single stock in our database.

The result of crunching these thousands of data points is this shaded cone that shows you the most likely price range of ELF stock.

And, as you can see above, almost none of the shaded area falls below the horizontal line marking our strike price.

In other words, ELF had an 81% chance of staying above the $175 strike price by expiration. Those are extremely high odds that you would have pocketed your max profit of $60 in less than 30 days and moved on to the next Constant Cash Flow trade.

And you get a new moneymaking option trade sent to your email inbox every single day of the year… including weekends and holidays. Money never sleeps!

I’ll take those odds every day of the week.

Good investing,

Mike Burnick
Senior Analyst, TradeSmith