AI Improvement

  1. Turnover:

My AI Factor Models also have very high turnover.

BUT --> the key is than to train the predictor from for example from 2003 - 2020, then you can put the predictor in a ranking system and use it for a 5 year backtest in a portfolio strategy (you can also do this with the validation predictor for longer tests).

You then give more room, e.g. use for example a sell rule of Rank < 90 (I use < 80). My result is --> turnover around 200-300% a year.

  1. Use of AI Factor Strategies

I use AI Factor Strategies for my personal account --> (unhedged version, my results are lower, since I am long 70% / short 30% via a short on IWM). What you see is 100% OOS Live Trading trading

Hedged (with a 15% Position of TWM)

  1. AI Factor Small Cap Index:

13 Small cap AI Factor based systems, 100 - 125 Stocks (What you see is OOS Live)

Built it to attract allocators, 2 allocators are interested (not sure yet!)

  1. Designer Models

will publish some soon

  1. Teaser AI Model on X (pined to my profile!)

All in all --> Transition from traditional ranking systems to AI Factor ranking systems took me a while, but I am glad I invested the time and effort.

Next projects --> get allocators on the model + a shorter term swing trading system (half discreationary) based on AI Factor picks.

Lets see, but I am happy Marco told to have a look at AI Factor :-)))

Best Regards

Andreas

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