AI Directional Risk

Introduction

The AI Directional Risk model is an advanced tool designed for market regime segmentation, dividing the market into two distinct zones to guide directional risk exposure. The model aims to optimize trading decisions by recommending position adjustments based on prevailing market conditions.

AI Directional Risk Usage guide

The AI Directional Risk model segments the market into green and red zones to guide trading strategies. The green zone, indicating a favorable market for long positions, recommends reducing short positions. The red zone, signaling a less favorable market for long positions, advises reducing long positions.

This model is only effective for trend-following strategies. Traders utilizing trend-following techniques can benefit by aligning their positions with the directional insights provided by the model, thereby enhancing their ability to capture sustained market movements and optimize their trading performance.