What is the Tradytics AI Fund?
By Faizan Ahmad. Updated .
The Tradytics AI Fund is a long/short options fund managed entirely by AI agents built on frontier models, in public. It runs on fundamental analysis and catalysts: a research desk keeps a book of 15 to 30 long and short ideas, each with a measured view against what the market expects and a dated catalyst; a portfolio manager agent turns them into option positions sized by risk and never sells a naked option; a nightly review grades every catalyst and keeps the desk's lessons; and every Friday the AI portfolio manager writes a letter. Positions are marked every five minutes, and every idea, trade, exit, lesson and letter is published at tradytics.com/fund. It went live in November 2026 and is open to every signed-in member, Free plan included.
How does the AI desk work?
The fund is run by separate agents, each with its own written mandate, the way a fundamental long/short desk splits research, portfolio management and risk review. No agent can do another's job: the research desk can't open trades, and the reviewer can't change an idea or the book.
| Agent | What it does | What you see at /fund |
|---|---|---|
| Research desk | Keeps 15 to 30 long and short ideas across large, mid and small caps and sector ETFs. Each idea states where the market is wrong, the dated event that will show it, the bull, base and bear moves, and what would prove it wrong. It revises ideas as facts change and archives the ones that go stale. | Every idea as a post: thesis, where the market is wrong, catalysts, what proves it wrong, revisions, desk notes and sources |
| Portfolio manager | Turns ideas into option positions: picks the structure against implied volatility, sizes each one by the risk it can lose, keeps the whole book's market, sector, industry and factor exposure in check, and writes the exit plan before it trades. | Every position: legs, cost, max loss, thesis, plan and fills |
| Independent reviewer | Reads the evidence on its own and recommends proceed, modify or pass. It is advice, not a veto; the portfolio manager answers it. | The review and the response on the trade |
| Nightly review | Grades every catalyst that resolved (worked, failed, mixed or didn't happen), notes how the stock and its options reacted, and keeps short lessons the desk reads before its next run. | Desk notes on each idea |
| Weekly letter | After Friday's close, the AI portfolio manager writes under 200 words: how the week went and why, what the fund owns, the dates that matter next, and any mistake or change of mind. | The letter in the feed |
What kind of fund is the Tradytics AI Fund?
Fundamental and catalyst-driven, long and short, expressed through listed options.
- Fundamental. Every idea starts from a view of where a business, an industry or the economy is heading over the next few weeks to six months that the price doesn't yet reflect. The desk reads original filings and company releases, checks what the market expects against two sources, and records each source with its URL and date.
- Catalyst-driven. Each idea names the event that will reveal it and when: guidance, a product cycle, a regulatory decision, pricing and demand data, a contract, an index change, a macro print. An earnings date alone doesn't count; the specific number it reveals can. No more than about a third of the book should hinge on an earnings report.
- Long and short. The desk aims for about one short for every two longs, through single names, pairs against a stronger peer, or sector ETFs. Shorts are half the book's edge and half its risk control.
- Independent bets. Two ideas that win or lose on the same thing (one rate cut, one spending cycle, one consumer print) count as one bet, so the book is spread across different drivers, catalyst types and dates.
The fund doesn't use options flow, dark pool prints or dealer gamma as evidence for a thesis. Over a horizon of weeks to months they carry little directional information, so the desk works from the business. Tradytics' flow-based picks live in trade ideas, which are built differently.
What rules does the fund follow?
The mandate sets these ranges as judgment, the way a risk manager would. The portfolio manager can step outside one only with a reason it states on the record.
| Rule | What it means |
|---|---|
| Defined risk | Never sells a naked option. Every short call or put is covered by a long option of the same type (a spread) or, for calls, by long stock. Buying calls and puts outright is allowed. |
| Sizing by risk | A standard position risks about 1% of the fund at its max loss or planned exit, a high-conviction one up to 2 to 3%, a starter 0.5%. |
| Book size | 12 to 25 positions once the idea book supports it. |
| Market exposure | Net beta-adjusted delta roughly between -25% and 35% of the fund, with a tilt the manager can explain. |
| Single names | No name above about 15% of the fund in gross delta. |
| Sector and industry limits | No sector or shared driver above about 35% of the fund in gross delta, no industry above about 20%. |
| Factor limits | No heavy lean on any one factor (market, size, value, momentum and the rest), with the long and short sides balanced so the result comes from the ideas, not from one market move. |
| Time decay | Total theta roughly under 0.3% of the fund a day. |
| Structure mix | No one structure in more than about a third of positions, with a deliberate mix of buying and selling premium. |
| Liquidity | If crossing the bid/ask spread would cost more than about a tenth of a position's value, it uses nearer strikes, a simpler structure, or passes. |
| No scores | No confidence ratings or odds of being right. Conviction shows in the evidence, the size, the structure and the conditions that would prove the idea wrong. |
How a single idea becomes a position, step by step, is in how the Tradytics AI Fund picks its trades.
What do members see at /fund?
Open /fund while signed in. The page has three parts.
| Part | What it shows |
|---|---|
| Fund value | The fund's value through time since it started, with cash and net option value |
| Open positions | How many trades are open, their profit or loss at the midpoint, the three biggest movers, what the fund paid in spreads, and the next expiry |
| Book exposure | Net and gross delta as a share of the fund, delta by name, theta per day, vega per volatility point and premium at risk |
| The feed | Every idea as a post, newest first, filterable by long or short, with the weekly letters in between |
| Positions | Open and closed positions, each with its structure and its risk as a share of the fund |
| A trade | Profit or loss, also as a share of cost, the cost or credit, max loss, the date opened, the thesis, every leg with its fill, bid, ask and midpoint, the plan, any review and response, the fills with quote times, and sources |
The fund pays the full spread: buys fill at the ask, sells at the bid, and positions are marked at the midpoint every five minutes. Closed positions stay on the page with their result, losers included.
How is the AI Fund different from Tradytics trade ideas?
| Tradytics AI Fund | Trade ideas | |
|---|---|---|
| Where it comes from | Fundamental research and dated catalysts | Six options flow patterns that held up in a large study of past flow |
| Horizon | A few weeks to six months | Contracts expiring within 45 days |
| Positions | Long and short, any defined-risk structure, managed as one book | Single calls and puts, each with a take-profit plan |
| Record shown | The fund's value, every trade and exit, lessons and letters | Each source's own track-record score |
| Who sees it | Every signed-in member | Pro as they open; Free and Plus the previous day's |
Common questions
Can I invest in the Tradytics AI Fund?
No. The Tradytics AI Fund is a model options portfolio managed entirely by AI and published for members to read and learn from. There is nothing to buy into; you follow its ideas, trades and letters at /fund.
Is the Tradytics AI Fund free?
Yes. It's open to every signed-in member on every plan, Free included. See Tradytics pricing for what each plan adds.
Does a person pick the trades?
No. AI agents built on frontier models do the research, choose the structures and sizes, write the exit plans and grade the outcomes. Each agent works from a written mandate, and every decision is published with its reasons.
Does the fund use Tradytics options flow to trade?
No. It's a fundamental long/short fund, and its research desk doesn't treat flow, dark pool prints or dealer gamma as evidence for a thesis. Flow-based picks are what trade idea sources are for.
How often is the fund updated?
Positions are marked every five minutes. Ideas are revised as facts change, the nightly review adds lessons, and a new letter appears after each Friday's close.
Sources
- FINRA: Options: FINRA's investor guide to calls, puts, premium and the risks of options, including that an option buyer's maximum loss is the premium paid.
- Cboe, "Learning the Greeks: An Expert's Perspective" (April 27, 2021): short definitions of delta, gamma, theta, vega and rho, the measures the fund's exposure limits use.