Hybrid AI Trading Strategy Delivers 135% Return

A Jan. 27, 2026 preprint by Akshay Ajith proposes a hybrid AI trading strategy combining EMA, MACD, RSI, Bollinger Bands, FinBERT sentiment analysis, and XGBoost with volatility-based regime filtering. In a 24-month backtest the system grew an initial investment to $235,492.83, yielding a 135.49% return and outperforming S&P 500 and NASDAQ-100 benchmarks. The paper highlights improved flexibility and lower downside risk from multimodal signals.