AI Beating The Stock Market: Breakout With Stats

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.

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Zero-dollar ($0) commissions are available for self-directed Individual cash or margin brokerage accounts that trade U.S. listed securities via mobile devices and via web interface. To obtain the commission and fee schedule, please see our website at www.iflipinvest.com. Note that certain Flip Investor Inc. Product features listed are currently in development and will be available in the near future. System execution price, speed, response time, liquidity, market information, and account access times are affected by many factors, including market volatility, size and type of order, market conditions, system performance, and other factors. Some of the information provided show hypothetical results which may or may not represent live performance. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns.  Keep in mind that while diversification and the use of algorithms may help manage risk it does not assure a profit, or protect completely against losses, in a down market. There is always the potential of losing money when you invest in securities, or other financial products.  Investors should consider their investment objectives and risks carefully prior to investing.

Past performance is not indicative of future performance. iFlip data results assembled using various Flip algorithms applied to the equities listed on this webpage (if any). Results compiled for each equity and each algorithm assume a 10,000 initial investment beginning on Jan 1st 2005. All iFlip price assumptions are based on the opening price of each day as found in Yahoo finance. Yearly NAV data points compiled by compounding annual returns using standard year over year accounting. S&P500 results are derived using the SPY as a proxy. The data on this webpage is not intended as a solicitation. Always seek professional advice for suitability.

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David Bay - Consulting Board Member

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Marc Chesley - Consulting Board Member

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Kelly Korshak - CTO

Kelly attended Stanford and subsequently the University of Chicago and has a graduate degree in mathematics.  He spent 25+ years on Wall Street, investing over $4 Billion assets for institutional banks and funds including Deutsche Bank, Morgan Stanley, Diamondback Capital, Brevan Howard and Tudor Group. 

His strategy to investing is built around the approach that Artificial Intelligence (A.I.) and machine learning algorithms produce superior risk / reward in the stock market.  This A.I. approach led him to retire from Wall Street with his family in Arizona to start up his own company “Flip Investor”.  

His dream is to empower all individuals to grow their wealth through the power of A.I. SmartFolio technology.

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His passion for technology led him to one of the fastest growing software companies called Infusionsoft, which peaked with over 150,000 software users.  As the VP of Business Training for customers, he developed and oversaw the expansion of the Elite Business Education curriculum program.

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