What are Key Leading Economic Indicators which helped RoboAdvisors navigate the current market volatility and will it help to better prepare for future extreme market conditions?

At kristal.AI, we use a number of indicators and you can look to follow those too but main ones I personally look at are RSI of relevant ETF and VIX index. Our algorithms are utilizing other information like cross asset correlations, investment committee's forward looking views along with various price data of relevant ETFs. ETFs are also shortliseted based on CAGR, Sharpe and Return/drawdown.

A lot of this may sound daunting which is why we have made it easier by just saying #trustthealgo or for amounts 50K USD reach out to our advisory / RMs for detailed explanations.

Economic indicators are measures that offer insight regarding economic activity. It could be useful for doing short term trading where you aim for the lag between the leading indicator and current price through various indicators such as RSI, Stochastic oscillator and Williams %R. Hoevever, the roboadvisors do not carry this out.

Stock market is also a proxy to gauge expectations for the future. If you look at the US market for example, it has been rising recently despite still in a ongoing pandemic because of expectations of the future benefits from the stimulus package. Hence, using a leading indictor, which is used to predict future economic conditions, to predict stock market is not feasible.