Lumos Alpha
Quant Portfolio I
Quant Portfolio I is tailored for clients seeking significantly higher returns while accepting minor levels of risk.
The portfolio is powered by an advanced artificial intelligence (AI) algorithm that identify high-probability trading opportunities. The algorithm extracts and processes features from a wide range of data sources, including stock price movements, company financials, commodity price trends, alternative assets, investor sentiment, and macroeconomic indicators. The extracted features are then fed into a well-trained machine learning model that classify each stock price scenario as either a buy or sell opportunity.
The portfolio is exclusively long in stocks or ETFs, with no short positions. No margin is required.
The AI trading system was developed and trained prior to 2020, and then rigorously tested in live trading with real capital from 2020 to 2024. During this time, the AI system executed 25 trades with a win rate of 72%, an average return of 7.8% per trade, a profit factor of 7.4, and a maximum drawdown of just −11.5%. It achieved a compound annual growth rate (CAGR) of 40.3%, resulting in a total return of 444.2%. In contrast, the S&P 500 Index delivered a CAGR of 14.5% and a total return of 96.5%.
Figure 1. Portfolio growth comparison between the Quant Portfolio I and the S&P 500 Index from 2020 to 2024. The Quant Portfolio I achieved a compound annual growth rate (CAGR) of 40.3%, resulting in a total return of 444.2%. In comparison, the S&P 500 Index delivered a CAGR of 14.5% and a total return of 96.5% over the same period.
Figure 2. Monthly and cumulative return comparison between Quant Portfolio I and the S&P 500 Index from January to October 2025. The year-to-date (YTD) return for Quant Portfolio I is 43.3%, compared to 17.5% for the S&P 500 Index.