Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of MIBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of MIBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Investment Strategies / Mechanical Investing
Unthreaded | Threaded | Whole Thread (3) |
Author: lizgdal   😊 😞
Number: of 6131 
Subject: Re: P123 ML for MI
Date: 05/04/24 1:24 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 9
Yes, the P123 ML project is interesting.

Human stock screens are very different than AI generated screens. For example, Random Forest combines hundreds of decision trees, while a standard MI screen is one decision tree. To reduce overfitting, Random Forest uses simple decision trees, while humans use common sense. Standard AI methods do not have common sense or financial literacy, and so will produce different screens than humans. Modern AI methods might produce better stock screens compared to human expert rules based screens, or they might not.

The stock market has feedback with successful investors gaining more capital. AI methods will have to evolve or die, with a cycle:
First movers make a profit.
Others catch up and the trades become crowded and unprofitable.
New methods are developed and the cycle continues.

Successful AI methods will switch between investing strategies, something that has proven difficult for humans.

There are 2 limits to AI: data and processing. Both improve over time, and new algoriths are being developed, and so AI will overtake humans in investing at some point. But we're not there yet.

AI Powered Equity ETF (AIEQ) uses IBM Watson.
VanEck Social Sentiment ETF (BUZZ) uses sentiment from news and social media.
Qraft AI-Enhanced U.S. Large Cap Momentum ETF (AMOM) This AI picks large-cap momentum stocks.
WisdomTree International AI Enhanced Value Fund (AIVI) This AI model picks value-priced stocks.

                  Name                    Annualized Return  Annualized Standard Deviation
SPDR S&P 500 ETF Trust 10% 18%
Amplify AI Powered Equity ETF -2% 25%
VanEck Social Sentiment ETF -5% 33%
QRAFT AI-Enhanced US Large Cap Mmntm ETF 5% 22%
WisdomTree Intl Al Enhanced Val ETF 3% 17%
Vanguard Total International Stock ETF 1% 17%


Returns from Apr-21 to Feb-24 portfoliovisualizer.com - Factor analysis
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to lizgdal here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 6,115 posts about Mechanical Investing. The article-length ones it recommended most:
Dividend investing · 52 recs · 2025
Non-Mag7 screen · 34 recs · 2025
OT - Div yields and returns · 32 recs · 2024
Using AI to generate backtesting programs · 30 recs · 2025
Rankings for 19Dec2022 · 29 recs · 2022
Unthreaded | Threaded | Whole Thread (3) |


Announcements
Mechanical Investing FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of MI | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community