Portfolio Optimization Engines with AI: Black-Litterman, Hierarchical Risk Parity, neural allocators, entropy-based allocators

By Hayden Van Der Post and Sterling Whitmore

Reactive Publishing

Portfolio construction is no longer a static exercise. In an era of regime shifts, liquidity shocks, and nonlinear market behavior, traditional allocation models break down. The future belongs to adaptive engines, systems that learn, rebalance, and optimize dynamically.

Portfolio Optimization Engines with AI is a comprehensive guide to building next-generation allocation frameworks using machine learning, statistical modeling, and advanced optimization techniques. Designed for quants, systematic traders, and portfolio architects, this book shows you how to engineer intelligent allocation systems that outperform conventional methods.

Inside, you'll learn how to:

Build AI-driven allocators using supervised, unsupervised, and reinforcement learning

Design risk models that capture volatility clusters, tail events, and correlation breakdowns

Implement classical, modern, and post-modern optimization frameworks:

Mean-variance

Black-Litterman

Hierarchical Risk Parity

Entropy-based allocators

Shrinkage and Bayesian models

Construct multi-asset portfolios built on equities, options, futures, and crypto

Build stress-testing engines for inflation shocks, volatility expansions, and liquidity crises

Evaluate durability using probabilistic scenario analysis and walk-forward testing

Deploy live, self-adjusting allocation engines with strict risk controls and override logic

Each chapter blends deep theory with executable models, real-world examples, and practical engineering guidance. The result is a definitive playbook for designing allocation systems that think, adapt, and evolve with the market.

If your goal is to build portfolios that are robust, intelligent, and structurally superior to traditional models, this book gives you the architecture to do it.

This is portfolio optimization for the AI era.

• Format: Paperback
• Language: English
• ISBN: B0G2GR87Y6
• ISBN13: 9798274563710
• Release Date: November 2025
• Publisher: Independently Published
• Length: 260 Pages
• Weight: 0.78 lbs.
• Dimensions: 0.6" x 6.0" x 9.0"