Quote:
Originally Posted by Cliff Fr
This thread has me wondering when AI will be used to manage an investment portfolio.  |
It is already being used, and it's called machine learning. This is not the AI that is used for interactive customer service.
The AI/machine learning is used to select the best allocation of ETFs, or portfolio balance.
I subscribe to a service that has over 100 different AI/machine learning portfolios, using different ETFS, different risk tolerances, different rebalancing strategies. All trained from the start of ETFS in the early 90-s and then the explosion of them in the 2000s. Mostly stock market and economic conditions based. I am discontinuing it because its very difficult to actually follow the daily recommendations.
All beat their benchmarks, whatever the benchmark you want to select is.
If you don't want a benchmark, you should select the highest sharpe ratio, and the smallest maximum drawdown, say sharpe greater than 1.0 and largest draw down over 30+ years of -10%.
The service is under the name Jungle Rock, and its based out of the UK/Cayman Islands.
The other subscription i have with a mean reversion individual stock selection with hedging/option writing, also using AI/machine learning. Average return over 20+ years is 20% per year, huge sharpe ratio, and minimal correlation to the SP500. Independent also running institutional money. He lives in Switzerland. Substack name is BankofVol
good luck