Grow Wealth.
Harvest Losses.
Pay Less in Taxes.

It’s a smart strategy built to give you tax efficiency along with active alpha potential:

• You hold long and short ETF positions at the same time, typically aiming to match or beat a benchmark.
• As markets move, the short side is used to control volatility while naturally creating capital losses. Your long side pursues growth.
• This occurs automatically through rebalancing, without needing complex tax-triggered trades or holding hundreds of stocks

• Direct Indexing: You own many individual stocks and manually sell losers for tax benefit.
• TALS uses both gains and losses as part of normal turnover, so it generates new capital losses year after year. No “loss ceiling.”
• Studies show direct indexing plateaus at ~30% cumulative net losses, while TALS can exceed 100% of your initial capital within ~3 years, up to 10x more over time.

It’s supported by robust academic research (e.g., dependent on your allocation and leverage):

• A study by Liberman et al. (2023) modeled TALS and found net losses exceeding 100% of invested capital in just 3 years.
• This is possible because short-side exposure creates fresh harvestable losses continuously, even when the long side is rising. Traditional strategies eventually run out of opportunities.

• alphaAI uses only ETFs (not hundreds of separate stocks) to build the long and short arms, simplifying trading and tax tracking
• Using leveraged and inverse ETFs enables us to avoid margin, borrow costs, and other complexities. This, in turn, enables us to make this type of strategy more broadly accessible to everyday investors, not just the ultra-wealthy.
• Our AI dynamically scales short exposure based on real-time market conditions with the goal of generating pre- and post-tax alpha.

Yes. TALS isn’t tied to market downturns:

• Even in rising markets, short positions (or inverse ETFs) create capital losses when they move against you.
• Because of continuous rebalancing, TALS still generates losses—it doesn’t run out of “harvestable losses.”
• Your long exposure still participates in upside, so you don’t miss market gains.

• All trades generate standard Form 1099‑B reports.
• Losses generated on the short side can offset capital gains from any taxable investment, not just within the strategy.
• Most trades shouldn’t trigger wash sales due to our year-end tax loss harvesting process. However, an experienced tax advisor is still recommended for the best results and complex tax situations.