Difference In Stock Market Investing Strategies:
Robo Advisor Vs. iFlip's A.I. SmartFolio

Many people have asked, "What is the difference between iFlip's A.I. SmartFolio and Robo Advisor company products like Betterment, Wealthfront or Wealthsimple...etc?" The answer is that iFlip is NOTHING like these robo advisors, neither is it like an index fund. Robo Advisors use a strategy called rebalancing that uses some algorithms to rebalance your account, but iFlip uses A.I. technology to analyze and trade for you. It's like the difference between having a car with cruise control or a self-driving car. The car with cruise control will only keep you going at a certain mph, while the self-driving car can protect and get you to where you want to go without any human interference. See examples of rebalancing and A.I. SmartFolio technology below.

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What iFlip A.I. SmartFolios Do - Risk Management For Stock Trading Apps

iFlip's A.I. SmartFolio technology uses a complicated analysis on your stock positions (DAILY). This type of machine learning can make decisions for trading based on risk and profitable future results. The A.I. SmartFolio can act based on analysis for you by making decisions to buy, sell or hold your stocks. This is a done for you solution and does not require people to understand how the stock market works.

For example, iFlip’s A.I. predicted a dip at the beginning of 2020. In the month of November 2019 the A.I. SmartFolio automatically sold a large portion of iFlip's positions in the S&P 500 (SPY) as shown in the graph to the side. This saved customers a large portion of their investments because the beginning of February 2020 there was a -32.72% drop in the SPY.

What happened? The A.I. SmartFolio "Tactical Model" started to see red flags in the market, meaning risk was increasing at a high rate. This prompted the A.I. to make a decision to sell a large portion of the positions. This sell took place in November and the stock crashed 3 months later in February.

The A.I. SmartFolios are designed to see volatility and risk. Based on the analysis of these factors, it will then buy, sell or hold A.I. SmartFolio positions. We do not believe in crystal balls or knowing EXACTLY what a stock will do in the future. However, we've shown in historical results, it's possible for our A.I. SmartFolios to get our predictions close enough to avoid large crash losses.

2020 Crash Data 3
Publication Date of Chart & Article: April 1, 2020 “Results of platform users are different depending on date of account establishment and other factors. Results are hypothetical. Past performance is no guarantee of future results.”

On March 17th, 2020, after the crash, iFlip's A.I. SmartFolio bought back into the market when it started a sharp recovery. This shows that the A.I. was able to sense that the market would create a v shaped recovery. Where did this A.I. SmartFolio technology derive from? The short answer is, this A.I. has been developed over the last 20 years, using over 4 Billion dollars of investment funds. . Kelly Korshak, CTO & Co-Founder of iFlip, along with his team are the architects and genius behind the machine learning systems.

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What Robo Advisors Do - Strategy Called Rebalancing

Companies that use Robo Trading Advisors use a strategy called rebalancing to grow their wealth. This type of strategy uses diversification. They put your money into different groups of risky stocks to give you a stable portfolio (balanced). By diversifying your money these companies hope that over time you will make money as the stocks grow in value. Rebalancing comes in when some of your stocks grow more than others. When this happens the Robo Advisor will automatically buys and sells stocks portions in order to get your portfolio back to its original diversified portfolio. Here's an example of rebalancing.

To Better Understand Rebalancing, See The Following 3 Steps.

Rebalancing Diagram 1

Step 1. You invest $200 | $100 in Portfolio A (50% of Investments) and $100 in Portfolio B (50% of Investments).

Rebalancing robo advisors robo trading stocks example

Step 2. Wait One Month | Portfolio A grows to 150$ (60% of Investments) and Portfolio B stays at $100 (40% of Investments).

Rebalancing Diagram 3

Step 3. Robo Advisor Rebalancing | Robo Advisor automatically sells $25 in Portfolio A, changing it to $125 (50% of Investments) and buys $25 of Portfolio B changing it to $125 (50% of Investments).

*Result. Investments are rebalanced | Both portfolios are back to a 50% split of total investment value.

iFlip doesn’t believe that rebalancing is an effective tool to preserve, protect and grow wealth. The key to good returns is investing in what is successful and managing the risk for higher returns.

This is why robo advisors under perform. Currently, iFlip is the only software in the world that gives individuals the ability to use A.I. to protect and grow their wealth through automation. It has the power to actually manage the risk for your investments based on A.I. SmartFolio decision making.

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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. A $0.01 / share commission applied. 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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Doug Adams copy

Doug Adams - COO

Doug Adams has more than 30 years of experience as an executive in the IT industry. He has demonstrated success helping companies grow profitably with high degrees of customer satisfaction. 

He has a passion for developing talent and building high performing teams. Most recently as a Senior VP at FusionStorm, he helped grow the company from $440mm to over $1bb in sales and improve profitability 1500% (15x) over 7 years. Prior to that he was at Oracle for 14 years where he served as a Vice President in their North America Consulting Division. 

He had responsibility for a variety of software and technology practices with a team of over 400 consultants. He has also held leadership positions at IBM and Andersen Consulting (Accenture), and holds a BS degree from Cal Poly, San Luis Obispo in Industrial Engineering.

Ed Sweeney

Ed Sweeny - Board Member

Ed Sweeney is a partner and a founder of RCM Alternatives. Previously, he was a Managing Director of Trading at TD Options, LLC, a subsidiary of TD Securities until 2006. 

He is also a founder of Starboard Specialty Funds, LLC. which is an active fund specializing in private and publicly traded bank equities.
He was also a co-founder of a trading technology firm, Ragnarok Systems, and also worked for O’Connor & Associates and at Swiss Bank Corporation as a director of fixed income trading.
Mr. Sweeney graduated with an M.S. and B.S. in Mechanical Engineering from MIT, has a J.D. from John Marshall Law School and holds a Series 7, 24 and 63 licenses.

Karla Dennis copy 2

Karla Dennis - Board Member

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds. 

She has been featured in various media outlets such as, KTLA, Forbes, MSNBC, Yahoo! Finance, and SmartMoney marking her the ultimate tax and business expert.

Thomas Shippee Bio

Thomas Shippee - Consulting Board Member

Thomas P. Shippee is a financial services investor and industry expert. His early years he earned a Bachelor’s degree in Economics at Bates College and an MBA at Pepperdine University.   

For the last 35 years he has served in various positions including CEO of Wells Fargo Financial whereupon he oversaw all US and Canadian consumer and commercial business finance operations from Des Moines, IA.  He currently spends his efforts in the consumer financial services industry counseling and working for small privately held businesses.  

David Bay Bio

David Bay - Consulting Board Member

David is a Kentucky native graduating with a degree in Music Education at University of Kentucky and a Masters degree in Education from Xavier University. His early years were spent excelling as band director leading his group to breaking records, honors and 3 straight years of placing in state wide competitions. 

In 1988 David started a new life of entrepreneurship. Since then his natural ability to lead and passion for growing people has stretched him to employ over a hundred employees and operating several businesses over several industries including real estate, heating oil, farm gas, commercial lubricant, consulting, skilled nursing care, convenience store and restaurant business.  

Marc C

Marc Chesley - Consulting Board Member

Marc Chesley is a software industry pioneer with a passion for growing people and companies. He is a recognized innovator and operational leader. As former CTO at Infusionsoft, Marc helped grow the company from startup to over $100mm in revenue. He has led as CEO and President of many fast-growth software companies. 

Marc was recognized as Arizona CIO of the Year by the Phoenix Business Journal and the Arizona Technology Council.  The Society for Information Management awarded him Arizona IT Leader of the Year. He currently works as the COO at Paradox (fast-growing software firm) managing product teams, engineering teams, business development teams and serving as general counsel.

Kelly

Kelly Korshak - CTO

Kelly attended Stanford and subsequently the University of Chicago and has a graduate degree in mathematics.  He spent 30+ 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 mathematical algorithms produce superior risk / reward in the stock market.  This algorithmic intelligence (AI) 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 AI investment technology.

Randy Tate

Randy Tate - CEO

Randy spent his earlier years as a successful collegiate athlete and then self-made entrepreneur.  He grew an athletic apparel company to over $5M+ in revenue, then sold it to a publicly traded sporting conglomerate, Sports Chalet. 

For the last 10+ years he has trained thousands of employees and business owners on how to market effectively, grow sales and build sustainable growth in their companies.

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.

Since then he has led as the co-founder and CEO of iFlip, SAAS Financial Technology Company.  His passion is to empower all individuals to grow their wealth for the future through the use of AI investing technology.