Hi YXI friends,

Every Friday, we review how the systematic signals have done since launch. Living and breathing the systematic signals in real time is very different to looking at pretty backtesting charts.

There will be plenty of days or even streaks of days when the models are wrong. Moreover, investor psychology matters arguably even more when following the machine. The human instinct is always to look for “reasons” and “narratives” to satisfy their decision making. But here, to a degree, we are “blindly” trusting something that appears smarter without it giving precise explanations to how they reach the conclusions.

Even the late Jim Simons of Renaissance Technologies had days where he felt really stuck with the algo’s poor performance he was unsure whether to pull the plug or to plough through. And often, as soon as he did actually pull the plug and dialled back risk, the market bounced back strongly.

Returns are as of May 22 Market Close:

I plan to keep TSLA and PLTR free for everyone, everyday. Please share the newsletter with friends and colleagues who may find it helpful for reference.

Premium subscribers can enjoy daily access to SPY, QQQ, BTC, TLT, AAPL, AMZN, GOOGL, META, MSFT, and NVDA signals. If you haven’t already, subscribe now to lock in the current price forever. Our service price is scheduled to rise to $4995 p.a. in June.

How The Model Works

We employ individual proprietary machine learning models for each name we cover to outperform the Buy-and-Hold strategy. The model examines the various macro drivers and asset specific factors against an asset’s historical price movements. It is a long-only strategy without leverage.

In interpreting the signal, 1 occurs when the model prefers being “position on” and 0 when preferring “cash”. There is no “minimum” holding period when the signal shows 1. The model strategy simply holds the asset until the signal turns to 0. This could be after 1 day, 1 week, or longer.

The unique strength of our offering is the combination of the independent cross-asset signals everyday, to clearly illustrate the market sentiment.

The model will NOT be 100% correct in its market prediction everyday (no model can be - please run away if someone claims this). Each model is being improved over time, so the below success rates and back-test results are subject to change. Currently, the model returns are calculated using the daily closes versus the previous day. The model outputs are not financial advice and there is no guarantee of future performance.

Table of Contents

• How The Model Works

• 1. TSLA

• 2. PLTR

• 2.5 Summary Of Today’s YXI Signals

• 3. SPY

• 4. QQQ

• 5. BTC

• 6. TLT

• 7. AAPL

• 8. AMZN

• 9. GOOGL

• 10. META

• 11. MSFT

• 12. NVDA

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. TSLA

The YXI TSLA Signal

(These results are based on historical data and may not predict future performance.)

Strategy Sharpe Ratio: 1.70

Strategy Maximum Drawdown: -33.74%

Buy & Hold Sharpe Ratio: 0.78

Buy & Hold Maximum Drawdown: -73.63%

Note the y-axis below is in log scale to offer a clearer comparison between the two strategies.

2. PLTR

The YXI PLTR Signal

(These results are based on historical data and may not predict future performance.)

Strategy Sharpe Ratio: 1.88

Strategy Maximum Drawdown: -40.61%

Buy & Hold Sharpe Ratio: 0.91

Buy & Hold Maximum Drawdown: -79.14%

Note the y-axis below is in log scale to offer a clearer comparison between the two strategies

2.5 Summary Of Today’s YXI Signals

SPY, QQQ, BTC, TLT, AAPL, AMZN, MSFT, META, NVDA, TSLA, PLTR

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