Your Ticket to a Trader’s “House Edge”

By TradeSmith Research Team

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The House Always Wins

As anyone who goes to Las Vegas should know before staying too long at the tables, casinos have a built-in statistical advantage.

The rules of each game are mathematically designed to ensure that the house has an edge.

This doesn’t mean you’ll lose every bet. Some folks will walk away with the casino’s cash.

But over time, across many players, the casino will keep a percentage of the total money bet.

This “house edge” is how casinos make a profit. Without it, there’d be no MGM Grand… no Caesars Palace… and no Bellagio.

And without my “house edge” as a trader, who knows if I’d have made gains anywhere near as high as:

  • 279% in a single day on QQQ
  • 193% in three weeks on PSTG
  • 337% in 27 days on WHD
  • 650% in three days on DNN
  • 190% in 32 days on XPEV
  • 1,046% in 27 days on LEU 
  • 1,900% in four days on AIRS 

Today, I’ll show how you can gain a similar house edge as I used in these recent trades. But before we get into how I did it, let me introduce myself.

Put the Odds in Your Favor

My name is Jonathan Rose. For more than 16 years, I traded in the “pits” of some of the biggest exchanges in the world – including the Chicago Mercantile Exchange and the Chicago Board Options Exchange.

You may have seen pit traders in the movies or on TV. We used a combination of shouting and hand signals to buy and sell stocks, options, and commodities.

I then established myself as a pioneer in electronic trading in the Nasdaq markets. And in 2003, a group of top traders from Chicago handpicked me to join their brand-new trading firm.

Over my career, I’ve seen guys make more money in a few weeks than many people will earn in their lives. And I’ve often regularly made upward of $1 million a year through my trading.

I didn’t do it by trading subjective opinions about where the market should be headed. Instead, I use a quantitative algorithm that gives me “advanced notice” before major moves in a stock.

And this can lead to rapid triple- and quadruple-digit returns like the examples I showed you above.

Your “House Edge”

Wall Street firms pay teams of whip-smart analysts millions of dollars to analyze markets. These folks are some of the most well-connected, well-informed investors in the world.

If they’re betting big bucks that something is about to happen in the market, they’re most likely right.

So, over my 27 years as a trader, I learned how to spot unusual buying activity from Wall Street firms. This gives me advanced notice of what the market is likely to do next.

I held a special briefing all about it last week. And I showed folks how this advanced notice indicator works and how you can apply it to your own trading.

In a nutshell, I look for unusual options activity in a stock. 

If you’re not familiar with options, don’t worry. They’re tradable contracts that give you the right to buy or sell stocks at an agreed-upon price within a specific time frame.

And Wall Street traders use them to profit from moves in stocks.

If I see unusual options activity forming around a stock, I know that big-money investors are piling in ahead of a major move.

I use this indicator to track options activity on more than 5,000 stocks and rank each opportunity on a scale of 0 to 100.I then comb through the highest-scoring opportunities. I’m looking for plays that will give my followers the highest probability of success.

The Results Can Be Massive Gains… At Warp Speed

Take my recent trade on the Invesco QQQ ETF (QQQ). It tracks the Nasdaq 100, i.e. the top tech stocks in the United States.

In early April, my system flashed a warning that QQQ was likely to pull back. So, I recommended a trade that would pay off as tech stocks fell.

The timing was spot-on. Later that day, QQQ began to plunge. By the next morning, anyone who followed that recommendation was sitting on gains of 279%.

Or take my Feb. 23 recommendation to place a bullish trade on online broker Robinhood Markets (HOOD).

That trade comes out to a combined 52% gain. Folks who followed me could have made $1,300 on a $2,500 investment in just 20 days.

And that same day, I made another recommendation – on digital storage company Pure Storage (PSTG).

Once again, my unusual options activity signal was right on the money… and as a result, I was, too.

This time, my followers had the chance to almost triple their money… in just 22 days.

Now, compare that to what a long-term investor might make:

  • From 1802 to 2012, investment returns in U.S. stocks averaged 6.7% a year.
  • At that rate, you’d double your money in about 11 years. You’d triple it in about 17 years.

Not bad… for the Average Joe. But you’re still reading this because you don’t want to be an Average Joe. You want to take control and get that wait time down to just weeks – or days.

Become a Master Trader Today

I know what you may be thinking…

If this system is so powerful, why haven’t you heard of it before?

I get it.

You see, over the past nine years, I kept my group small because finding these unusual options trades was difficult.

I had to use old-school scanners… then dig through the data manually until I found a potential trade. It was a rigorous process.

It limited the amount of time I had to teach all the other critical skills of becoming a successful trader – things like risk management, position sizing, and emotional control.

Now it’s different. I have my unusual options scoring indicator to do the heavy lifting.

And last week, I held an online event to tell folks all about it – the Masters in Trading Summit.

I revealed details of my advanced notice system… and how it helps find trades that go up 90.3% of the time.

I also shared the results of a live trading experiment I ran based on my advanced notice system. I think you’ll find it interesting:

Participants could have walked away with more than $21,000 in profits by investing just $2,500 into seven trade recommendations I closed during a six-week window.

Now, I want to be clear. This isn’t some get-rich-quick scheme. If you want instant gratification, my strategy isn’t for you.

But if you want to learn how to potentially make triple-digit gains in 30 days or less – then I urge you to watch the replay and join my trading community. 

Then let me give you all the tools you need to help you accomplish your financial goals.

Keep in mind, the creative trader always wins!

Jonathan Rose
Founder, Masters in Trading