AI Has No Use Cases
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Nobody Likes A Smart Mouth
Another week that lasted a month, and nobody wants to hear an I-told-you-so from anyone. Because that kind of thing just tends to annoy and bring on a bad case of schadenfreude pointed at the smug individual doing the victory lap whilst you curse your own idiocy.
One of the many reasons we continue to develop our quantitative offerings here at Cestrian is that machines don’t get smug and don’t gain satisfaction from others’ misfortune. At least as far as we know. But then for a long time people thought dogs couldn’t communicate very well, so, perhaps one day we will learn to spot what a robot laughing at us looks like. Anyway I digress.
The most simple, easy-to-use, you-don’t-need-a-math-PhD-to-benefit-from-it quant service that we offer is SignalFlow AI. It does a very simple thing. It runs an AI model over long-run price data continuously and teaches itself what a coming correction looks like in price data. When it finds a “possible correction coming” pattern in price data, the machine spits out a Risk Off signal. Having gone to Risk Off, if the algorithm sees a pattern it believes means that calm and potential upside has returned, it spits out a Risk On signal. Subscribers get the Risk On or Risk Off signal every day at the close. You can use the signals how you wish, but the easy way is to (say) take the S&P500 risk signal and when Risk Off flashes, go to cash. And when Risk On pops up, re-invest that cash back into your S&P500 instrument of choice. (We use $SPY to run the machine).
We also offer SignalFlow for QQQ. Here’s how it held up in the recent dump.
Not once has Buddy The Robot there posted high-five emojis or told anyone it is the Machine With The Mostest or tried to sell anyone a Discord service. What a paragon of virtue!
If you’d like to take the emotion out of your investing and trading, I myself believe our SignalFlow for SPY and SignalFlow for QQQ services to be exceptional.
You can read more here:
Alex King
Cestrian Capital Research, Inc - 28 March 2025