Everybody wants to win big and lose small. But whenever you invest in anything where you can see the price change, you feel compelled to check whether you’re up or down. You might have been told that your investment was a long-term investment or a “set it and forget it” investment. But still you check it. Maybe even daily.
Then if it’s down more than you like, for longer than you like, you quickly close the account. This makes the old saying of “Buy Low Sell High” not work to your advantage because you’re selling out at the bottom.
Algorithmic Intelligence (AI)
Using Algorithmic Intelligence (AI), iFlip has created the best automated trading software available. iFlip’s algorithmic trading software is designed to work in all market conditions. It works when the market is trending up, down or staying sideways.
By using algorithmic trading software, your account can win big and lose small. AI mitigates your risk over the long-term. The trick is to make your investment and be patient. Let it grow and build your wealth.
AI Blend Performance – Beat the Market.
A good example of AI is the newest addition to the iFlip AI Portfolios, the Blend. Everyone is always talking about how it is impossible to beat the market. Well, we design AI portfolios to do that over time.
Let’s say back in 2005, you invested only $2,000 into the iFlip AI Blend Portfolio and another $2,000 in the S&P 500, which is the market guideline. You would’ve beat the market by 50.29% or $5,270 in a period of 15 years (this takes into account negative compound interest month by month). This type of return on investment that is only possible because of AI technology managing the risk of the market on a daily basis.
Introducing Blend AI
The Blend AI is a moderate portfolio consisting of approximately 70% trend strategies, 20% short-term strategies and 10% defensive assets (Gold and Bonds). With AI as part of its name, you know it will be using the best algorithmic trading software. And that can only come from iFlip.
As you can see, the Blend AI portfolio contains the popular trading stocks Apple, Facebook, Amazon, McDonald’s, Costco, and Netflix. Then it rounds it out with some Gold, Treasury Bonds, Railroads, and the S&P 500. Altogether, you can see how this portfolio can kill the market over time.
Low Drawdown
Even though Blend AI is just being introduced, you will find some of the most interesting points in its history. Monthly drawdown never exceeds 5% in this portfolio, meaning you will never lose more than 5%. This low drawdown is due to iFlip’s risk management, which can be attributed to the iFlip AI technology.
| Year | iFlip AI (Blend) | S&P 500 (ETF) | Comparison |
|---|---|---|---|
| 2005 | 6.91% | 4.91% | 2.00% |
| 2006 | 0.89% | 15.79% | -14.90% |
| 2007 | 23.18% | 5.49% | 17.69% |
| 2008 | 7.23% | -37.00% | 44.23% |
| 2009 | 10.56% | 26.46% | -15.90% |
| 2010 | 21.84% | 15.06% | 6.78% |
| 2011 | 9.63% | 2.11% | 7.52% |
| 2012 | 8.58% | 16.00% | -7.42% |
| 2013 | 39.51% | 32.39% | 7.12% |
| 2014 | 12.52% | 13.96% | -1.44% |
| 2015 | 9.74% | 1.38% | 8.36% |
| 2016 | 9.84% | 11.96% | -2.12% |
| 2017 | 19.20% | 21.83% | -2.63% |
| 2018 | 9.12% | -4.38% | 13.50% |
| 2019 | 4.74% | 17.24% | -12.50% |
| Average Annual Return | 12.90% | 9.55% | 3.55% |
| Total Return (15 Years) | 193.49% | 143.20% | 50.29% |
Looking at the chart above, you may say, “But it only beat the market 8 out of 14 years!” That’s true, but what’s important to notice is that cumulatively, Blend AI beat the market on average 4.5% per year. Over time, that gives your investment a total of 50.29% more return vs the market.
Win Big and Lose Small
The point of AI is to manage your risk in the market. It uses mathematics to make bets that will lose small and win big. This is why you will see the Blend AI doesn’t beat the market every year, but it beats it overall. Nothing beats the market every time. You won’t always be above the market, but AI will cut your risk and give you a higher Return On Investment (ROI) long term. What you want is something that can help you win big and lose small. That is the strategy.
Just Leave It Be!
In order to let your portfolio grow the best it can for you, it must be allowed to stay where it is for the long-term. Just as you plant a tree hoping for shade or fruit in the future, you don’t dig it up when the first wind blows. You leave it to grow, get taller and bigger until one day, it provides shade and fruit for you.
That’s just what iFlip’s Blend AI portfolio can do, too. Just leave it be! Let it grow through the ups and downs. AI can mitigate the risk for you. Win Big and lose small. That’s all.
