Follow the Smart Money to Bigger Gains

By TradeSmith Editorial Staff

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If you’ve been following TradeSmith Daily for some time, then you know how much of a valuable edge our entry signal system can give you.

In fact, a few years back we published a study that backtested the results of all our TradeSmith stock entry signals going back more than 20 years.

And we were absolutely delighted with the results.

To recap, we looked at what would have happened if you had bought a stock when our system flashed an entry signal on the upside, then exited that stock when a TradeStop signal was triggered on the downside.

The results: Over the 22-year study period covering thousands of stocks, using our entry signal showed a 56% win rate, with an average gain of 38.9% per trade! This includes ALL trades, both winners and losers.

Even better, the winning trades averaged big gains of 82.4%, while the average drawdown on trades that moved against us was only 16.4%. This means the margin of outperformance for winners over losers was an impressive 5 to 1.

But we are never content with “just good enough.” After all, there is always room for improvement — even on these already fantastic results.

So, we thought long and hard about how to improve them even more. Our solution: the smart money indicator.

The Smart Money Indicator

What is the smart money indicator, and how can it help you boost your upside potential?

Quite simply, we follow the stock selections of some of the world’s smartest investors both on and off Wall Street.

We’re talking living legends of the investment world: Warren Buffett, Carl Icahn, Ray Dalio… 27 of the best smart money investors in all.

These are elite investors who earned fortunes for themselves and for the savvy investors who were smart enough to invest their money alongside them over many years.

By closely following the stocks that these successful investors are buying, we created our smart money indicator, called the Billionaires Club.

To improve our results even more, we tested a strategy where we limited our stock universe to include only those that the billionaires are buying.

Then we took it one step further.

We found that the most successful investors tend to flock together. Several members of our Billionaires Club often buy the same great stocks. So we focused on stocks that are owned by at least three of the billionaires we follow.

By adding this simple strategy to our proven formula for stock entry signals, we witnessed even stronger performance.

Our win rate increased from 56% up to 63.9% of all trades, plus we maintained our stellar outperformance margin of 5 to 1!

Today’s Billionaire Picks

But those results are from the past. Which winning stocks are the billionaires riding to riches now?

Here are three stocks to look at.

Advance Auto Parts (AAP) is owned by Billionaires Club members Ray Dalio, Lee Ainslie, and top investment firm Barrow Hanley. The stock triggered an entry signal in March and is now up by more than 24% this year.

ConocoPhillips (COP), the big oil and gas producer, is also owned by Dalio and Barrow Hanley, plus Billionaire Arnold Van Den Berg. COP triggered an entry signal in February and is up nearly 30% year to date.

CBRE Group (CBRE), the giant real estate company, is owned by Dalio, Jeffrey Ubben, and William Von Mueffling. Our system flagged an entry signal on CBRE last November, and it has gained more than 80% since then.

All three stocks are still in the Green Zone today and in confirmed uptrends. So it’s not too late to join the smart money and consider these stocks for your own portfolio.