First, It is possible to create steady portfolio returns independent of broad market behavior.

Second, AI is not a magic remedy for modeling and prediction in stock markets.

In the figure below, the blue path is uncorrelated with the broad market.

graph blue red, example hedge fund growth problem and solution day number spy daily close vs daily prediction

In a previous article, we compared the index AIEQ with the S&P 500 index, and showed that the AI-controlled index is much like the broad market.

We repeat the figure again, below, for visual comparison.

hi res red blue graphs by insight inc investing miami, normalized index prices 1200

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