We could not have timed the launch of our AI-Fund any better to demonstrate our significant trading edge in the shortest time period. In the last quarter of 2018, the US equity markets just came apart at the seams and spiraled rapidly into a bear market - a fall of 20% from all-time highs. They experienced their worst December since the Great Depression. Despite the jaw-dropping, vicious volatility of the markets, our artificial intelligence powered, volatility trading strategies outperformed the S&P 500 by almost 14.58% (net returns before management fees).
We are exhilarated by how our system performed in one of the most difficult market environments seen in decades. Our trading strategies have been built painstakingly over a decade of intense trading, research and experimentation. Our past failures and successes have helped us build our present system of superior volatility trading strategies and enabling technologies that will sustain its edge in any market environment.
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The Kelly Criterion, popularly known as 'Fortune's Formula', is a capital allocation algorithm used successfully by great traders and investors such as Buffet, Simons and Thorpe.
The formula allocates capital to positive expectation trades with the goal of maximizing the expected compound growth rate of capital over the long term and without the risk of ever going broke.
It has been proven mathematically that a Kelly strategy outperforms any other capital allocation strategy in the long run.