Let Our AI-Powered
Indexes Help You Improve Investment Decision-making
Merlyn.AI employs AI and advanced signal processing tools that seek to identify momentum leaders, assess the market’s bull vs. bear status, and genetically evolve our underlying strategies as we learn market behavior.
Merlyn.AI monitors market activity to detect Bull vs. Bear market conditions and adjust index holdings.
Bull Market Performance
Seek to hold momentum leaders and avoid laggards
Bear Market Mitigation
Switch to defensive holdings
How it Works
Momentum Detection
It’s all about reducing the noise
Market noise tends to obscure momentum signals. Using advanced signal processing techniques and adaptive tuning of momentum filters, Merlyn.AI seeks to detect momentum with greater clarity to provide improved selection of momentum leaders. Simply put, cleaner signals lead to the possibility of better decisions. We believe momentum detection is a key part of fund selection for both bull and bear market holdings.
Genetic Algorithms
Seek to Adapt to Changing Markets
Merlyn.AI deploys genetic algorithms to evolve competing sets of candidate ETF models from which momentum-leading ETFs are identified. During the evolution process, member ETFs of the competing models are replaced by ones that seek to make the model stronger (e.g. improve the performance). Using this selection process Merlyn.AI seeks to eliminate hindsight selection bias and adapt the ETF selection process to changing market conditions.
StormGuard™ and SwanGuard™
Market Risk Assessment
Traditional portfolio theory relies on the dilution of risk. With StormGuard™ and SwanGuard™, our proprietary market risk assessment software, we seek to avoid risk. Artificial Intelligence and advanced algorithms seek to assess the risk of U.S. equity markets (identified as “bull” or “bear”) using four key metrics:
Price-trend indicates the degree to which U.S. market securities prices are trending higher or lower.
Market momentum indicates the volume-adjusted, price-trend of U.S. equity market securities to assess investor conviction.
Value sentiment indicates the recent proportion of U.S. equity market securities making 52-week highs against those making 52-week lows.
Higher market volatility is correlated with a higher probability of declining markets and may indicate the possible onset of an extreme market decline.
