I Know First Sample Portfolio Returns 37% in Past 12 Months (3-month predictions)
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Above are the returns for I Know First’s sample Top 10 stock portfolio. If one had bought all of I Know First’s 3-month prediction, Top 10 stock predictions in equal weights on the first day of each quarter starting on Oct 1st 2012, he would have earned 37%, beating the S&P 500 by 10.11%. If one started this investment strategy at the beginning of this year, on January 1st 2013, he would have earned 34.1%, beating the S&P 500 by 6.2%.
Though this is a decent investment strategy for inactive investors (as one only changes his stock portfolio four times per year), we advise checking the forecasts daily to identify trends in the algorithm. For instance the algorithm began predicting Alcatel-Lucent’s (ALU) rise as early as December 9th 2012; however, there was a large correction in the middle of its upward trend. If one followed the algorithm’s signals for ALU daily, he would see a trend of decreasing signals leading up to ALU’s decline and very strong signals before its rise. The signal for ALU on January 1st 2013 was only 152 (it fell 5.04% during the following 3-month period); the signal for ALU on April 1st 2013 was 2561 (it rose 34.59% during the following 3-month period). ALU has risen over 125% since it was first advised.
Additionally the algorithm predicts the direction of the S&P 500,Nasdaq and Dow Jones* daily. We correctly predicted its direction on July 1st 2012, January 1st 2013, April 1st 2013 and July 1st 2013 but were incorrect in predicting its direction on October 1st 2012. Here, it is interesting to note that its signal was particularly low (0.12) and that the general heatmap is overwhelming red. Though there are no hard and fast rules when trading based upon the algorithm’s predictions, the best investors will analyze the trends of the predictabilities and signals for each stock as well as acknowledge the general heatmap for the direction of the market.
So how we calculating the return? Check the daily forecast for S&P 500, Nasdaq and Dow Jones
If most of those indices are positive>> choose the top 10 stocks/indices for long position
If most of those indices are negative>>choose the top 10 stocks/indices for short position
* S&P 500 forecas is available for all our subscribers Nasdaq and Dow Jones are available for additional payment ($25/mo for each market).