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.
Explore Our A.I. SmartFolios
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.
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.
Read more about Kelly Korshak
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.
Step 1. You invest $200 | $100 in Portfolio A (50% of Investments) and $100 in Portfolio B (50% of Investments).
Step 2. Wait One Month | Portfolio A grows to 150$ (60% of Investments) and Portfolio B stays at $100 (40% of Investments).
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.