Last week, after more than a year of painstaking development and testing, I unveiled a new AI-powered trading system, Prometheus. And it has since generated a lot of buzz.
Given its great early success, I wanted to take the opportunity to go more in-depth and answer some of our new Prometheus AI users’ most commonly asked questions.
So, in this special edition of Hypergrowth Investing, we will answer some of your burning questions about our new AI-driven system.
Let’s get right to it.
How does Prometheus AI work?
Prometheus is an AI stock-picking system that is trained on hundreds of thousands of financial market data points. Its goal is to identify the exact moment a given stock is ready to surge higher.
It leverages more than 50 technical and fundamental factors to tailor AI models for every applicable stock in the market. Then, it uses those curated models to determine the probability for a major breakout in each stock.
That is, every week, Prometheus scans the entire stock market. And where applicable, it rates the probability that a stock will surge higher in price over the next few weeks.
The higher the score, the more likely the stock is to surge over the next month. The lower the score, the less likely.
What does the “Prometheus Rating” mean?
The Prometheus Rating ranges from 0 to 100 and roughly correlates to the percentage likelihood that stock will break out over the next four weeks.
For example, a Prometheus Rating of 50 means that the AI thinks that the stock has about a 50% chance of breaking out over the next month.
With each scan of the market, Prometheus gives each stock a new Prometheus Rating. As such, Prometheus Ratings change every week.
Ratings for individual stocks range all the way from 0.01 to 99.9. But most stocks have a Prometheus Rating between 30 and 70.
Based on our back-testing, we know that stocks with Prometheus Ratings above 80 are strong stocks to buy, as they tend to deliver exceptional returns over the next four weeks. Stocks with Prometheus Ratings north of 90 do even better.
In other words, the Prometheus Rating equates to the probability that a stock will soar in price over the next four weeks. And we try to target stocks with Prometheus Ratings north of 80.
Is Prometheus an AI chatbot, too?
In some senses, Prometheus AI does act like a chatbot, similar to OpenAI’s ChatGPT; though it was not designed to be a conversational AI.
Prometheus was designed to be predictive AI for stock trading. However, we have also internally developed a user-facing widget that allows you to interact with Prometheus via text queries.
Through this widget, you can simply ask Prometheus AI about a stock, and it will give you the Prometheus Rating for that stock.
To that end, Prometheus AI can be used to not only help you pick the best stocks to buy but also to perform a “health check” on your current portfolio and stock holdings.
Though, it’s important to remember that Prometheus is a dynamic tool that integrates real-time market data into its scoring algorithms. So, you should expect scoring changes – lots of them. This is a feature, not a bug. We want the latest market information when we’re considering putting money into a trade.
And once we’re in a trade, what we watch more than the Prometheus Rating is the price action of the stock itself. After all, the most important thing when trading is that a stock goes up in price while you own it.
What does Prometheus AI think about the market?
Prometheus AI is not designed to predict the direction of the overall stock market. Instead, it is specifically designed to predict the direction of individual stocks, no matter the overall market conditions.
However, we can approximate the implied direction of the overall stock market by calculating the average Prometheus Rating for all of the individual stocks in a given week.
In our most recent scan, the average Prometheus Rating across the stock market was 47. This roughly means that the Prometheus AI thinks there is a 47% chance the stock market stages a big breakout over the next four weeks – or roughly 50/50.
That may not seem great. But it is worth mentioning that the average Prometheus Rating across the stock market rarely gets below 40 or above 60. Therefore, an average Prometheus Rating of 47 is pretty normal.
What does Prometheus think about tech stocks or energy stocks?
Again, Prometheus AI is designed to predict the direction of individual stocks, not various sectors or the entire market. But we can approximate the Prometheus AI prediction for a sector by averaging the Prometheus Ratings across all the stocks in that sector.
In our most recent scan, utility stocks scored the highest Prometheus Ratings, with an average rating of over 56. Financial and real estate stocks were a close second and third, each with average Prometheus Ratings of just over 54.
Healthcare stocks had the lowest ratings, with an average Prometheus Rating of just 41. Consumer staples stocks didn’t fare much better, scoring an average of 44.
Technology stocks scored an average of 50 in the most recent scan. Energy stocks were at 51.
In other words, the Prometheus AI is sensing a lot of breakout potential in the utility, financial, and real estate sectors – and very little breakout potential in the healthcare and consumer staples sectors.
Does Prometheus AI think Nvidia (NVDA) stock is a good buy?
Nvidia stock has quickly become the AI Boom’s poster child here in 2023. And shares are up more than 200% year-to-date. Naturally, Prometheus AI users want to know whether or not this rally has more runway left – or if it’s on its last legs.
Prometheus isn’t giving a super-definitive answer, but it’s definitely leaning toward the latter.
NVDA stock’s most recent Prometheus Rating is just 46. That’s not bad. But it also isn’t great. And it is one of the lowest Prometheus Ratings that NVDA stock has featured all year long.
Therefore, it is fair to say that while Prometheus AI isn’t saying it is time to sell NVDA stock, it also isn’t very bullish.
What are Prometheus’ biggest predictions right now?
Prometheus has some pretty big predictions right now.
It produces ratings on over 5,000 stocks every single week. And in its most recent scan, Prometheus identified 295 stocks – about 5% of stocks in the market – that have a 90%-plus chance of soaring over the next four weeks.
We plan on buying a few of those stocks right away.
You should, too.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.