Artificial Intelligence Working On Investment Management
- 1. • What we do • Evidence • Under the bonnet • Over to you We only work through professional regulated institutions.
- 2. Call To Action – find out more. • Institutional Pension Funds stressed with deficits, in need of inspiration and real solutions, the need to move more into equity investment to bridge the loss due to low yields is growing and inevitable. Standard equity funds dramatically change the risk scale, but we are able to offer equity participation whilst conditioning for volatility. • Asset Managers struggling against the constant pressure of performance statistics and need to raise AUM • Trustees wanting to ensure their client’s individual pensions schemes run on a reliable risk control basis • Platforms wanting to offer something special to their market • Financial Advisors are required to offer the best solution that match their clients needs – we have a clear win-win solution. • Alternative Funds that sit as a foundation of portfolios need these portfolios to grow, then rebalancing offers opportunity for greater allocation • Passive investors experiencing the pain of market forces – buy and hold is no longer a painless journey. There is endless circumlocutory babble in the markets, economic analysis, analysts forecasting company results, explanations of why things happened the way they did, smart people starting funds and failing when theory is met with the real world, meaningless statistics, luck shining light on those deserving and undeserving enjoying their moment of limelight, losers (unlucky skilled and deserving unskilled) vilified as if one unit, and so it goes on. After all the talk… WHAT MATTERS ARE OUTCOMES MATCHING TARGETS AND PROMISES.
- 3. What we do We work with Institutions to design portfolios, aided with the support of artificial intelligence to achieve specific investment objectives. Our service maintains confidentiality Our service is Long Only daily/weekly/monthly trading. Having designed a portfolio we deliver buy/sell/hold trading signals to deliver the expected outcomes. Ongoing technical support is always available. Sorry, Active Long Only Managers can try, but still succumb – Passives are in for the full ride – the bear wins and pain ensues! Don’t endure, bring in new technology
- 4. Half the list of active portfolios we show online, along with trading signals. Unprecedented. A Few From 100 Online Portfolios From US Stocks. • Extraordinary claims require extra-ordinary evidence. • Most Investment companies have their current performing funds that are pushed forward, with lesser the performing relegated to the background. • Here we show a list of portfolios run live on the web, updated daily – no in-out selections.
- 5. A Few From 100 Online Portfolios From US Stocks. • Bench S&P 500 Return 52.94% • A.I US Stock Return 284.81% • Bench StDev 13.69% • A.I. StDev 11.53% • Bench Max Drawdown -19.82% • A.I. Max Drawdown -8.27% • A.I. Sharpe 5.63
- 6. A Few From 100 Online Portfolios From US Stocks. • Bench ETF Short -38.46% • A.I US Stock 80.9% • Bench StDev 13.68% • A.I. StDev 10.30% • Bench Max Drawdown -41.3% • A.I. Max -9.03% • A.I. Sharpe 1.82
- 7. A Few From 100 Online Portfolios From US Stocks. • Consumer Discretionary -55.65% • A.I US Stock 221.53% • Bench StDev 15.76% • A.I. StDev 12.85% • Bench Max Drawdown -41.3% • A.I. Max Drawdown -25.65% • A.I. Sharpe 3.86
- 8. So That’s The Outcomes Consistency - over and over
- 9. Under The Portfolio Bonnet • Here we look at the systems action on underlying individual Stocks of a specific portfolio • 100% prediction is impossible and will likely never be achieved in a random space – neither is it needed. • Your First Challenge: understanding why this system is not an algorithmic back test is the first major challenge for people new to this A.I. process. • There is no use of optimisation searching for best results that disappoint when reality steps in. First, let’s look at a UK Equities Portfolio – to 19 February 2019 The Numbers
- 10. Under The Portfolio Bonnet • We can see the system moving in and out of the stock, the flat line is out of the stock • Each stock is competing with cash • Decisions are not parametrically based, • 100% prediction is impossible and will likely never be achieved in a random space – neither is it needed.
- 11. Under The Portfolio Bonnet • We can see the system moving in and out of the stock, the flat line is out of the stock • Each stock is competing with cash • Decisions are not parametrically based, • 100% prediction is impossible and will likely never be achieved in a random space – neither is it needed.
- 12. Under The Portfolio Bonnet • We can see the system moving in and out of the stock, the flat line is out of the stock • Each stock is competing with cash • Decisions are not parametrically based, • 100% prediction is impossible and will likely never be achieved in a random space – neither is it needed.
- 13. By now you should have a clear picture of the underlying system behaviour – but no insight in to how. Under The Portfolio Bonnet • We could give many more examples, but the picture should now be clear • Each stock is competing with cash • Decisions are not parametrically based, • 100% prediction is impossible and will likely never be achieved in a random space – neither is it needed.
- 14. The System Outline • Long Only with Hedging • Each stock is competing with cash • Paradigm shift • Bayesian Network, Neural Networks, Genetic Algorithms and Expert system come together to produce a, presently, unique system. Paradigm The decision model that originates a Buy is different from the model that causes a Sale. These decisions take place when an internal consensus of group process thresholds is reached - not by a intersection of a parametrically cocktail of algebraic formulations that have never worked when it counts.