Seed Stage · AI-Sector Equity Rotation

A disciplined, rules-based approach to AI-sector equity rotation

SafeAITravels systematically ranks and holds the strongest name in each layer of the AI buildout — chips, cloud, energy/cooling, cybersecurity, automation — using a repeatable scoring formula, then manages every position through a pre-defined, volatility-adaptive tier ladder. Not a stock picker's opinion. A system.

◆ AI Universe · 22 names

The problem

AI is the defining equity theme of the decade — and most investors are exposed to it badly

1

Concentration without discipline

Retail and even professional portfolios pile into a handful of mega-cap AI names with no systematic entry, sizing, or exit rule — conviction stands in for process.

2

No risk ladder for drawdowns

A single bad earnings print becomes an all-or-nothing decision: hold and hope, or panic-sell. There's rarely a pre-committed plan for what happens at -20%, -40%, -60%.

3

Manual monitoring doesn't scale

Tracking 22+ names across 8 sub-sectors, rescoring fundamentals, and watching tier triggers daily is more than a part-time investor — or most advisors — can sustain.

The solution

A rules-based rotation engine across the AI value chain

SafeAITravels systematically ranks and holds the strongest name in each layer of the AI buildout using a repeatable scoring formula, then manages every position through a pre-defined, volatility-adaptive tier ladder for entries, adds, and exits.

Universe & Ranking

22 names across 8 AI-economy categories, scored on revenue growth, valuation, analyst upside, and beta — rebalanced quarterly.

Tiered Risk Ladder

Every position sizes in through volatility-adaptive tiers (25/32/43% of allocation) with hard stops — no unbounded exposure to a single thesis.

Human-Confirmed Automation

Signal generation, scoring, and monitoring are fully automated; no order is ever submitted without an explicit human confirmation.

How it works

Four-stage pipeline, from universe to position

01

Score

22-name AI universe re-ranked each quarter on a composite of growth, valuation, analyst upside, and low-beta factors.

02

Filter

Candidates must clear both a profitability bar (positive historical expectancy) and a correlation screen (max 0.4 pairwise).

03

Size

Positions enter at 25% of slot allocation (Tier 1), adding only on further favorable volatility-adjusted moves.

04

Exit

Pre-committed profit targets and a two-level stop replace discretionary hold/sell decisions.

Research evidence

The framework was stress-tested before a dollar traded

Per-trade expectancy re-tested on a recent (2023–2026) window — not just a favorable historical episode — to separate a durable edge from a lucky backtest.

+0.98%

PLTR — avg. per-trade return, most durable candidate (2023–2026 window)

+0.39%

CVS — avg. per-trade return, recent-window survivor of both filters

0.4

Max pairwise correlation enforced across concurrent positions

5 / 11

Candidates that failed the profitability filter outright and were excluded before ever reaching the correlation screen

~1%

Of simulated trades ever reached the terminal hard-stop across the full historical test set

8 / 22

AI-economy categories tracked, from chips and cloud to energy/cooling and cybersecurity

Backtested, hypothetical results based on historical data; not a guarantee of future performance.

Where we are today

Pre-seed stage: framework built and automated, live track record just beginning

We are deliberately early. The priority so far has been proving the mechanics — scoring, tiering, risk controls, and reporting — work end-to-end with real broker data, at deliberately small live capital, before scaling.

Live brokerage integration

Direct IBKR connectivity for pricing, positions, and execution — currently running at intentionally minimal live capital to validate real-world fills against the model.

Parallel paper validation

A larger paper account runs the identical rule set alongside the live account, so live execution can be compared against theoretical performance before capital is scaled.

Daily automated monitoring

Weekday tier-checkins run automatically, screening all open positions against the ladder and producing a status report — but every trade still requires explicit human confirmation.

Full audit trail

Every trade, tier trigger, and ranking refresh is logged — the discipline needed for a real fund structure and for outside diligence.

Let's build the track record together

A disciplined, auditable answer to how to invest in the AI buildout

Not a single bet — a system. We're raising seed capital to take it from a validated framework to a proven track record.

Zane Gore
Founder, SafeAITravels