When signals are present (significant T-test or ANOVA), the underlying distribution is a mixture of distributions.

Traditional variance and correlation are incorrectly estimated in the presence of a mixture of distributions which affects Markowitz based portfolio construction. TriSignalPEA's ability to detect prospective and retrospective change points enables dynamic capture of gains not possible in a static framework. Additionally, compounding of investment returns is available with TriSignalPEA and absent in Markowitz framework. Of note: risk-tolerance is no longer relevant in a prospective/retrospective dynamic change point prediction/detection framework.