Elimination of Financial Bubbles Exposure and Tactical Leadership Bias in the risK-Yield Discriminant OptimizatioN—KYDON

The novel risK-Yield Discriminant OptimizatioN—KYDON can optimize portfolio selection in a volatile market, eliminating the exposure to extreme events: bubbles and busts. Implementing novel methods such as: (i) chaos dynamics, (ii) behavioral welfare, and (iii) optimal AI classifiers, KYDON supports the optimal investment policy. It diagnoses the possibility of bubbles, prepares for their burst under expectations of long growth and reduces the impact of systemic risk. KYDON performs as a dragonslayer, eliminating the loss of investors.