A.I + Dow stocks = ?
The stats were 39% average annual gain, max drawdown of 12.7%, and 83% winning months.
I thought that the strategies would be correlated to each other, but they weren't.
If strategies are correlated to each other, then they'll all fail at the same time and ruin your consistency.
While we're getting better numbers trading other markets, these stats blew me away because I was proven wrong.
I thought The Boss SuperAi would use similar trading rules across these stocks...but it didn't.
Being able to build strategies on individual stocks is a eureka moment for me because it means our capacity just went up by a factor of 10x or more.
I can spot a fraud in this industry by asking one simple question. I had a party at my house, and a sales guy for a hedge fund was there. He looked the part with his nice clothes, shiny shoes, and fancy watch.
So I popped the question..."what's the capacity?"
He looked at me with a blank stare, "What's capacity?"
Anyone that's ever bought a penny stock figures out pretty quick that they have a liquidity problem.
Try buying $5000 worth of some OTC scam stock, and you'll move the stock 10%, 20%, even 50% higher all on your lonesome.
So its capacity might be $100.
A good rule of thumb is to trade less than 1% of the average daily volume of an instrument.
That could be 1 million shares if you're trading something highly liquid like SPY.
Or maybe 1000 shares if you're trading an illiquid ETF like FAN (wind energy).
Jim Simon's Medallion Fund swing trades most stocks in the U.S, and has a capacity of about $10 billion. (their leveraged AUM was $34.8 billion in 2021).
That's a lot of loot!
One of our members is gearing up for fund management. Here's his audited real money track record as of Monday:
He used The Boss to build a bunch of strategies and then mixed them together into a multi-strategy.
That's how you get ultra-smooth results. And you don't have to be a hedge fund manager with a team of computer scientists. The A.I programs itself and runs tests to make sure it's not over-fitting to the past.
I don't have anything to sell you today, but I'm curious if you're interested in the new 100% Club?
That's where our goal is to win 100% of months. It's just a few of us in there...not open to the public.
It won't be cheap (you should see my cloud computing bills...it's like buying a car every month...and I ain't Oprah).
Let me know here:
Disclaimer: The results listed herein are based on hypothetical trades. Plainly speaking, these trades were not actually executed. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under (or over) compensated for the impact, if any, of certain market factors such as lack of liquidity. You may have done better or worse than the results portrayed.
I’m think reading this that It would be super if you could do something about fund management if there’s any advice you have other than the OPM article. Thanks