Risk Driven Model
Higher Risk / Drawdown leads to more Cash Utilization which further leads to more ROI. The breakouts our Machine Learning Intelligence identifies from the entire US Stock exchange is enough to accommodate large institutional investments with a controlled risk. How Risks are mitigated?
- By Sectors
- By controlled investment per stock
- By hedging daily between Long and Short depending on market’s volatility.
Hence this research proves the point :
Artificial Intelligence not only improves ROI% but also reduces Cost of Operation as it Scales. Notice we do even better when the markets are Bear.
| May 2018 – Bull Month S&P 500 : 2.38% | Output 1 ROI% : 12.86% DD% : -0.73% | Output 2 ROI% : 12.41% DD% : -0.65% | Output 3: On Back Test Tab ROI% : 10.44% DD% : -0.16% |
| July 2018 – Bull Month S&P 500 : 4.10% | Output 1 ROI% : 12.31% DD % : -0.60% | Output 2 ROI% : 9.87% DD% : -0.95% | Output 3: On Back Test Tab ROI% : 11.18% DD% : -0.62% |
| Feb 2018 – Bear Month S&P 500 : -3.62% | Output 1 ROI% : 15.31% DD% : -0.75% | Output 2 ROI% : 19.94% DD% : -0.34% | Output 3: On Back Test Tab ROI% : 7.37% DD% : -4.46% |
| March 2018 – Bear Month S&P 500 : -2.73% | Output 1 ROI% : 14.81% DD% : -0.10% | Output 2 ROI% : 12.10% DD% : -0.08% | Output 3: On Back Test Tab ROI% : 9.74% DD% : -0.18% |