Markets don’t behave the same way all the time. Sometimes prices trend smoothly, sometimes they swing wildly, and sometimes everything starts moving together. We call these different “moods” of the market regimes. Our proprietary AI/ML system is built to spot when the market may be changing from one regime to another, so we can understand the environment we’re investing in.
Our system looks at a mix of signals that capture how the market is acting right now. That includes things like price movement, trading activity, volatility (how bumpy things are), and correlation (whether different stocks and assets are moving together or not). We also pay attention to the broad market tone using news and commentary, because narrative shifts can matter—especially in tech. We don’t rely on just one model or one data point. We use multiple methods and look for agreement so we’re not reacting to a single noisy day.
When the system flags a possible regime change, it generates a simple “regime alert” for our team to review. That alert includes what regime the models think we’re in (for example, more risk-on vs. risk-off), how confident the system is, and what the main reasons are (like rising volatility, weakening breadth, or a jump in correlations). The goal is to keep the signal understandable—not a black box.
Importantly, we do not act automatically. Our expert team reviews the alert before anything impacts the portfolio. That review step is there to catch false alarms, double-check the data, and make sure the signal matches what’s happening in the real world. Sometimes the decision is “yes, this looks real,” and sometimes it’s “watch it but don’t act yet.”
If a regime change is approved, we may make straightforward portfolio adjustments. In a more defensive or “risk-off” regime, that can mean reducing overall risk, sizing positions more carefully, and being more selective with exposure. In a more stable or “risk-on” regime, it can mean adding back exposure gradually when conditions support it. We can also adjust how much we lean on different approaches inside the portfolio, make sub-sector shifts within tech, and scale the crypto sleeve up or down based on the environment and confidence level. Most of the time, changes are measured and gradual unless the evidence is strong.
This matters a lot for tech investing because tech stocks can move together during stressful markets. Even a portfolio that looks diversified can start acting like one big bet if correlations spike. Our regime detection helps us spot that kind of shift earlier and respond in a disciplined way.
This is for informational purposes only and is not investment advice.