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Meet GAIAA (Genetic Algorithm-based Iterative Asset Allocation)
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Dear Investor, meet GAIAA (Genetic Algorithm-based Iterative Asset Allocation).
In Darwin’s evolutionary theory, only the fittest survive the battle of natural selection. Similarly, Kristal.AI’s biology-inspired methodology selects the best portfolio design for every individual’s needs. Our proprietary AI uses an underlying genetic algorithm to choose and modify strategies from a pool of thousands of permutations.
At each stage, the curated strategies are tested against user-defined objectives, and only the ‘fittest’ strategies are chosen to finally evolve into a risk-limiting model which optimizes asset allocation and maximizes returns.
GAIAA is a multi-tasker and forms the backbone of our AI-enabled investing platform. We also use bootstrap and other algorithms to facilitate better portfolio planning. Let’s take a look.
Kristal.AI follows a meticulous 4-step methodology for scoring each equity ETF. Here’s how our algorithm does it:
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The universe of USD-traded ETFs are first categorized into large-cap, mid-cap, or as region-specific ETFs
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We apply some Math (Sharpe ratio, return percentage, volatility, liquidity)
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Now, we add some History to the mix. We dig into the archives to understand each ETF’s historical performance against a standard
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Then, we rank each ETF and choose the best in each category
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This gives us a pool of funds to use for our strategies
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GAIAA jumps into the fray now. She curates funds from this pool of the best strategies and recommends the best ones for your portfolio
Disclaimer
The materials and data contained herein are for information only and shall in no event be construed as an offer to purchase or sell or the solicitation of an offer to purchase or sell any securities in any jurisdiction. Kristal Advisors does not make any representation, undertaking, warranty or guarantee as to the update, completeness, correctness, reliability or accuracy of the materials and data herein. All opinions, forecasts or estimation expressed herein are subject to change without prior notice. Kristal Advisors and its affiliates accept no liability or responsibility whatsoever for any direct or consequential loss and/or damages arising out of or in relation to any use of opinions, forecasts, materials and data contained herein or otherwise arising in connection therewith.
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