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When Duolingo Was Tanking, an AI Algorithm Made a Contrarian Call

Charles’ Note: “Be greedy when others are fearful and fearful when others are greedy.”

That’s the secret of Warren Buffett’s success, in his own words. 

The problem is that not all of us have Buffett’s emotional detachment. And maintaining a cool head when the world is burning down in front of you is exceptionally hard. 

That’s  the beauty of AI. It’s not human. It doesn’t feel fear… or greed. It doesn’t get embarrassed or let its pride get in the way of good decision making. And it feels no need to keep up with the Joneses. 

It just thinks, rationally, and charts the best course based on the information it’s fed. 

My friend and colleague Keith Kaplan, CEO of TradeSmith has been using AI to navigate the chaotic trade-war market. Given the great unknown of what comes next, you can use every tool you can get. 

Below, he shares some of the details on the AI tool he and his team have developed to help you invest profitably in this kind of chaotic environment. 

He’ll dig deeper during an emergency briefing on Wednesday, April 16, 2025 at 8:00 p.m. ET. During The AI Predictive Power Event, you’ll discover exactly how this tech works… and how it can guide you through today’s market storm. Click here to sign up and get five of An-E’s most bearish forecasts now.

Keith, take it from here!

When Duolingo Was Tanking, an AI Algorithm Made a Contrarian Call

By Keith Kaplan, CEO, TradeSmith

$2 trillion. Gone in a flash. 

That’s how much value markets lost after President Donald Trump’s Liberation Day tariff announcement on April 2. That day, he set off one of the most volatile periods in recent market history. 

For most investors, it was a familiar response: fear and hesitation, which led to painful losses.

But for a growing class of traders, this chaos didn’t bring uncertainty – it brought opportunity.

Because in the middle of extreme volatility – when headlines change by the hour and traditional strategies fall apart – a powerful new force is emerging as the clear winner in the battle for market profits: AI.

While human investors react with fear, hesitation, or even overconfidence, a new breed of trading algorithm – like TradeSmith’s cutting-edge system, An-E (short for Analytical Engine) – is making precise, unemotional forecasts about where the market is heading next.

And in today’s chaos, that edge is proving invaluable. Let me explain why, and how you can take advantage.

The Shift: Why AI Is Dominating in Volatile Markets

In stable markets, it’s easy for anyone to feel like a smart investor.

But real skill – and real profits – show up when things fall apart. Volatility is the stress test.

That’s why AI is taking over.

Unlike humans, AI doesn’t get emotional. It doesn’t chase headlines.  It doesn’t second-guess every move. Instead, it digests mountains of data and makes calculated projections – especially when things get messy.

Now, AI-powered trading systems like robo-advisors have been gaining steam for years. In 2024 alone, “they” managed over $1.46 trillion in assets.

But robo-advisors are just basic.

To become truly useful, there needs to be a predictive AI element. 

True value lies beyond simple tools that manage your portfolio. They must also future stock movements before the rest of the market reacts.

That’s what sets An-E apart.

Unlike most robo-advisors that only adjust based on your risk tolerance, An-E takes it several steps further.

It uses advanced predictive modeling to forecast stock prices 21 trading days into the future. That’s a huge advantage when markets are whipping back and forth like they are now.

An-E analyzes millions of data points, learning patterns, pricing behavior, and momentum signals that most investors would never catch.

Here’s what that looks like in real time…

Case in Point: Duolingo (DUOL)

On March 3, 2025, An-E projected that Duolingo (DUOL) would rise to $325.30 within 21 trading days. That’s a projected increase of 10.18%. 

At the time, the stock seemed to be in freefall, having lost 33% since February 18. Market’s were trending steadily lower. The S&P 500 was down 5.5%, the Dow was down 3.5%, and the Nasdaq was down by 10% over that time frame.

Yet, an-E forecast that DUOL would head higher, and it ranked 66% on its confidence gauge. That’s its own internal measure of how likely the forecast was to come true. 

Twenty-one days later, the stock exceeded that projection, hitting $327.28 for a bigger gain of 10.89%.

In a choppy, panic-driven market, that kind of signal is game changing. 

The average investor sees volatility and backs away. But with the right tool, volatility becomes a profit machine. 

And that’s exactly what you want in today’s landscape. 

Because while there will always be winners, volatility also creates landmines – and knowing when companies are poised to crash could save your portfolio from serious losses as well. 

For example…

On March 7, 2025, An-E projected that Discover Financial Services (DFS) would fall from $167.52 to $150.83 within 21 trading days – a projected drop of 9.97%.

This time, An-E’s confidence gauge was even higher – 72%  – suggesting a strong likelihood the bearish move would materialize. 

By April 7, DFS had slunk to $150.88 – a nearly perfect match to An-E’s forecast, and a real-world 9.93% drop. 

Whether it’s going long on opportunities or short on risk, An-E thrives where human instinct fails.

Human Emotion vs. Machine Precision

Let’s face it: Human traders struggle in unpredictable markets. We get nervous. We chase headlines. We miss out – or worse, buy at the top and sell at the bottom.

But An-E doesn’t panic.

It simply scans millions of data points and highlights the moves most investors will miss – both bullish and bearish – with no emotion involved. That includes which stocks could collapse next, something no investor can afford to ignore right now.

AI is no longer a niche tool – it’s becoming the foundation of modern trading.

TradeSmith’s Emergency Briefing

To help investors navigate the volatility storm, TradeSmith is hosting a special AI Predictive Power Event on Wednesday, April 16 at 8 p.m. Eastern to reveal exactly how An-E works.

In particular, we’ll show which stocks to avoid immediately based on An-E’s bearish projections.

We’re in the middle of the most radical economic shift. Global trade is being rewritten, markets are convulsing, and investors are struggling to find their footing.

But An-E is built for this exact moment.

It cuts through the noise, sees what human intuition can’t, and delivers forecasts you can actually trade on – whether markets are crashing, bouncing, or stuck in a whipsaw.

Join the emergency briefing on April 16 and see how you can turn volatility into opportunity.

Keith Kaplan

CEO, TradeSmith