What does it do?
Q.ai uses a “wisdom of the crowd” approach with various artificial intelligence models to predict overall market movements. If we see signs of danger, we incorporate various levels of protection against an overall market downturn. Using Downside Protection can reduce gains if conditions remain strong, but it helps prevent losses in a market sell-off.
Which risks is Downside Protection addressing?
There are many ways to define risk, but, for nearly all financial assets, there is an associated risk and reward, as well as the asset’s exposure to overall market conditions. Diversification can help to limit an investor’s exposure to the specific risks of individual assets in a portfolio. But, in most cases, these assets share overall market risk. Q.ai’s Downside Protection is designed to maintain the upside associated with the selected investments for each Kit but limit the negative effects of a potential market sell-off.