Unlocking Profitability: Exploring Quantitative Trading Strategies and Recognizing Bullish Trends in AI and Digital Assets

Good evening, everyone!  

I’m excited to join you tonight to talk about investing, especially how to spot assets that are about to skyrocket. We'll dive into some strategies and use signals from the Quantitative Trading System 4.0 for precise moves. Let’s learn together and unlock the secrets to investment success here at Diamond Ridge Financial Academy's online course!

Last night, we covered the basics of technical analysis and reviewed its history to summarize the core rules behind market movements. The three key assumptions of technical analysis (market behavior reflects everything, prices move in trends and history repeats itself) give us a systematic way to pull clear investment signals from market chaos. Professor Hanover’s "Price Trend Theory" takes it even further, making technical analysis more practical. It helps us understand price movement patterns and guides our investment decisions.  

Now, I’ll share some key takeaways from Professor Hanover’s course and show you how to use the 21-day moving average to find price lows. Before we dive in, let’s quickly review today’s market and get up to speed on the latest trends.

The UK stock market entered a correction as expected today, with the FTSE 100 closing up slightly by 0.16%. The market’s focus today was on two areas, oil and crypto. Oil represents investments in traditional energy, while crypto highlights investments in cutting-edge tech. BTC’s rally came after President-elect Donald Trump announced his pick for the new SEC chair, which also boosted tech stocks.  

On the oil side, prices stayed stable as OPEC+ stuck to its production plans. Despite Shell and BP shares both dropping 1.3%, gains in major banks like Barclays and NatWest offset the losses, keeping the FTSE 100 mostly flat.

Taking a closer look, the best-performing assets lately fall into two main categories, AI-driven tech assets and digital assets led by crypto. Their strong performance isn’t random, they’re at the heart of the Fourth Industrial Revolution, driving deep changes in the global economy and society.  

The Fourth Industrial Revolution is all about digitalization and smart tech, transforming the traditional economy into a more connected and intelligent ecosystem. Key technologies like AI, big data and blockchain are becoming major growth drivers.

AI, in particular, is revolutionizing industries. From smart manufacturing to self-driving cars, from medical imaging to generative AI, its wide applications are boosting efficiency and opening up huge opportunities for investors.  

For example, in healthcare, AI helps doctors diagnose diseases more accurately. By analyzing tons of medical imaging data, AI can detect issues that might be missed by the human eye, improving both speed and accuracy. A company like "IDx Technologies" (IDXC), which specializes in AI for diagnosing eye diseases, is making big strides in this field, offering a lot of growth potential.

In self-driving cars, AI is changing how we travel. Autonomous vehicles reduce accidents, improve traffic flow and make travel more convenient. For example,  Tesla (TSLA), a global leader in self-driving tech, has stayed ahead of the game with its strong technology and its stock has jumped significantly in recent years.

It’s worth mentioning that back, when Musk supported Trump’s presidential campaign, our chief analyst, Hanover, had already flagged Tesla as a top pick, back when it was under $200 per share. Today, Tesla’s stock far exceeds those early expectations, proving Hanover’s sharp insights into market trends.

As shown above, after Tesla’s strong rebound in early Nov, it went through a two-week consolidation. This type of market behavior is often a way to shake out short-term profit-taking and build momentum for the next rally. Yesterday’s intraday performance and this morning’s early trading have once again put Tesla in the spotlight. I suggest continuing to buy Tesla, not only based on its solid fundamentals but also the positive signals from the technical side.  

Firstly, on the fundamentals, Tesla remains a leader in the new energy and smart driving sectors. Its Q3 2024 earnings report showed strong revenue growth and a significant increase in net profit, highlighting its excellent execution in core business areas.

What’s more important is Tesla’s active push into AI and autonomous driving, especially with the development and launch of Robotaxi. These innovations are set to reshape global ride-sharing and could become a new profit driver for Tesla. Meanwhile, with Trump’s election as U.S. President and Elon Musk being named Secretary of Efficiency, new policy incentives might flow into the new energy sector. As an industry leader, Tesla is expected to benefit first from these policies, further solidifying its market position. In addition, the global demand for green energy continues to rise, creating massive growth opportunities for Tesla’s energy storage and solar businesses.

On the technical side, Tesla’s stock price has pulled back after an initial rally, with a solid two-week consolidation around key support levels. Technical indicators show the stock aligning with the 21-day moving average, trending upward and recently breaking through the $360 resistance, forming a short-term bullish trend.  

Combining the fundamentals and technical, Tesla not only holds long-term value but also presents a great short-term trading opportunity. The first target price is $389 and the second is $405. For investors focusing on trends in new energy and AI, this is undoubtedly a golden buying opportunity.

Aside from the AI industry, another key investment theme in the Fourth Industrial Revolution is the "digital economy", which is growing rapidly in today’s world. Crypto and related digital assets are creating a new, decentralized economic model and are gradually becoming an essential part of the global financial system.  

Blockchain technology has broken traditional financial boundaries, providing a secure, transparent and efficient foundation for digital assets. Crypto assets have evolved from speculative tools into an innovative asset class with real-world applications, playing increasingly important roles in areas like payments, financial services and supply chain management.  

As the Web 3.0 ecosystem matures, concepts like the metaverse, NFTs and decentralized finance (DeFi) are driving industry innovation, attracting more and more capital. The growth of the digital economy is unstoppable, bringing investors unprecedented opportunities.

In today’s market, BTC’s strong performance is even more eye-catching than tech stocks.  

BTC, the world’s largest crypto, crossed the $100K mark earlier today, hitting a record high. This breakthrough by BTC has not only caught the attention of global investors but also lifted the overall sentiment in the crypto market, pushing up a number of tech stocks as well.  These include companies like MicroStrategy Incorporated (MSTR), Innodata (INOD), AppLovin Corporation (APP) and TeraWulf (WULF), all of which saw varying levels of gains.  

At the same time, BTC’s price surge is closely linked to recent developments in US politics and regulatory news as well as comments from Powell yesterday.  

US President-elect Donald Trump announced a few days ago that he is nominating Paul Atkins as the new chair of the Securities and Exchange Commission (SEC). That's one key point.

Atkins is a regulator who openly supports crypto and his nomination is seen as a sign that regulation in the industry may become more relaxed, boosting market confidence in crypto’s future.  

Atkins served as an SEC commissioner from 2002 to 2008 before founding Patomak Global Partners, a risk advisory firm that works with clients like banks and crypto companies. He also serves as co-chair of the Chamber of Digital Commerce, which promotes the use of digital assets. His background shows strong support for the digital asset space, making the market even more optimistic about BTC’s future.  

Trump described Atkins as a "leader in common-sense regulation" and emphasized his support for "innovative capital markets" in a statement. Compared to former SEC chair Gary Gensler’s hardline stance, Atkins’ arrival could signal more policy support for the crypto industry.

The recent BTC rally has been driven by multiple factors.  

First, the SEC approved two new BTC exchange-traded funds (ETFs) this year, making it easier for regular investors to participate in the crypto market. Institutional investors, including banks and funds, have shown increasing interest in digital assets, further pushing the market toward legitimacy.  

Second, Federal Reserve Chair Jerome Powell referred to BTC as "virtual gold" in his speech yesterday. He stated that its value lies more in being a store of value rather than a payment method. Powell’s comment reinforced BTC’s role as a safe-haven asset.  

These positive developments together fueled BTC's surge. This is no coincidence but rather a result of the Fourth Industrial Revolution and the rise of the digital economy. BTC’s value reflects the enormous potential of the digital economy, while emerging technologies like AI will continue to drive future economic growth.

Since Trump won the election in Nov, BTC's price has jumped nearly 50% and its total gain this year has reached an impressive 140%. For those who followed our advice and invested in crypto back in Oct, your returns are now over 80%. Even for those who joined recently and bought around $91K, the gains are already about 15%.  

As shown in the chart above, last week we shared a technical analysis chart where BTC had just pulled back near the 21-day moving average. Although BTC’s price stagnated over the past two weeks due to a lack of new catalysts and market sentiment turned pessimistic, we followed the trend of the tech revolution and used our quantitative trading system to precisely seize the buying opportunity.

Actually, the essence of a quantitative trading system is to use AI computing power to quickly gather market information and analyze historical technical patterns, allowing for accurate predictions of future trends. In technical analysis, many specific technical points become our fixed buy-and-sell signals.

For example, the BTC we mentioned earlier and the Trump Media & Technology Group (DJT) we recently recommended, were both identified as buy signals by our quantitative trading system when they pulled back near the 21-day moving average in a bullish trend.  

The influence of the 21-day moving average on stock prices is just one of the parameters in the quantitative trading system. Once you understand how to use the 21-day moving average, you'll be able to understand all the technical analysis principles and easily master this investment tool.

Let's take the technical analysis of Trump Media & Technology Group (DJT) as an example, as shown in the chart above.  

First, from the chart, we can see that the DJT stock started its rebound in Sep and entered an uptrend. Then, after the stock price fell below the 21-day moving average, it went into a sideways trend. We bought when the price was about to move back above the 21-day moving average. If students followed the advice and bought on Nov 29, after 5 consecutive days of increase, the maximum profit reached over 20%.  

Our trading tips was to buy around $30, with the first target price at $36.5. Today, the highest price reached near the first target which is the charm of technical analysis. We expect another buying opportunity will come as the price pulls back to the trendline.  

Looking at the chart, you'll realize that the pattern of price fluctuations is actually very simple. By combining the trend pattern with the 21-day moving average for buying and setting take-profit points based on the upper resistance levels.

That's all for tonight's sharing. Overall, following the trend of the tech revolution and mastering the quantitative trading system investment tools can lead to substantial profits and recent operations are the best proof. The goal of learning to invest is always to pursue high returns with low risks. The most direct way is to invest in the most cutting-edge, high-quality assets and combine the advantages of all investment types to create the optimal portfolio.

For those who want to follow the upcoming lessons on the quantitative trading system and portfolio investment strategies, feel free to reach out to me. In the next class, I will go deeper into explaining the "buying at the start of an uptrend." technique to help everyone capture market opportunities more accurately and achieve wealth growth! I hope tonight's sharing brings you valuable insights into investment!

Through tonight's sharing, please think about:

1. What is the current main investment trend in the market? Why is this investment trend emerging?  

2. Summarize the price movement of Trump Media & Technology Group (DJT) and analyze the technical principles behind it.