robinhood-options-mobile

AI-Driven Asset Allocation with Risk Profiling

This feature leverages Generative AI (Gemini 2.5) to provide personalized portfolio allocation recommendations based on the user’s risk profile.

Overview

The AI-Driven Asset Allocation tool is integrated into the Portfolio Rebalancing widget. It allows users to:

1. Define their Investor Profile including:
   • Risk Tolerance (Conservative, Moderate, Growth, Aggressive, Speculative)
   • Time Horizon (Short, Medium, Long Term)
   • Investment Goal (Preservation, Income, Growth, Speculation)
2. Receive AI-generated allocation targets for Asset Classes and Sectors with a contextual explanation.
3. Preview the strategy and explanation before applying it.

Workflow

1. Access: Navigate to the Portfolio Rebalancing tool.
2. Trigger: Tap the “AI Optimization” (sparkles) icon in the app bar.
3. Profile Definition: A dialog appears pre-filled with existing profile data. Select values for Risk, Horizon, and Goal.
4. Generation: The app shows a loading indicator while calling the generateContent25 Cloud Function.
   • Prompt: “Acting as a senior portfolio manager… for an investor with Risk: [Risk], Horizon: [Horizon], Goal: [Goal]…”
5. Review: A result dialog displays:
   • AI Explanation: A concise rationale for the suggested mix.
   • Asset Allocation Preview: Proposed percentages.
   • Sector Allocation Preview: Proposed percentages.
6. Application: Tap “Apply Strategy” to update the rebalancing interface, or “Dismiss” to discard.
7. Finalize: Tap Save (disk icon) to persist the new targets and profile settings.

Technical Details

• Frontend: RebalancingWidget handles the multi-step UI (Form Dialog -> Loading -> Result Dialog).
• State Management: Updates User model (InvestmentProfile) locally and in Firestore immediately upon form submission.
• Backend: Uses generateContent25 (Gemini 2.5 Flash Lite) for high-performance inference.
• Schema: AI returns JSON with explanation, assets, and sectors.

Future Enhancements

• Include current portfolio composition in the prompt for “migration” advice (e.g., “sell X to buy Y”).
• Add “Excluded Sectors” preference (e.g., for ESG or personal preference).