It’s been quite some time we launched our Artificial intelligence enabled stock recommending product. In this article we will analyze its performance statistically. For those who are still not aware about this product let me explain it briefly. This product was designed to serve the investment objective of “Heads you make windfall gains, Tails you don’t lose much” and this is exactly what is has did.
- We identify 10 stocks which are likely to generate 20% + returns in next 45 days using our Machine learning algorithm developed thru artificial intelligence technique. – Wealth creator algorithm
- Our second algorithm keeps a watch on market trend and generates a red signal if the market is not suitable for investment and the entire portfolio is sold and is re purchased only to reenter the market when indicator turns green
- Portfolio is replaced after every 45 days with fresh set of stocks.
To understand more about the product please refer to our article
Now let’s dive into the performance of our portfolio. Lets consider our portfolio returns only when the second algorithm (crash protector) was green because for the period it was red, we were out of the market. So now let the numbers speak.
Above figure is based on actual data collected on daily basis from our portfolio & market.
- Total number of days Sensex was open for trading during the calendar year.
- Number of days when our crash protector algorithm was Green indicating that market is suitable for our portfolio.
- Number of days when our crash protector algorithm was Red indicating that market is NOT suitable for our portfolio.
- Number of times in a year when our crash protector algorithm turned red from green resulting in sale of entire portfolio.
- Average length of a cycle in terms of trading days. This means that average number of days for which the cycle was active.
- Average daily return when market was considered suitable for investing.
- Total return generated by AInvest portfolio in the year.
- Average daily return when market was considered NOT suitable for investing.
- Hypothetical Return generated by AInvest portfolio if we had invested in days NOT suitable for investing.
This analysis clearly shows that our AI nvest scores well on both risk and return parameters. Its return has been 2.5 times better than best performing equity mutual fund and no negative return in at monthly level. Thanks to our crash protector algorithm which runs in parallel.