Where Chaos is Born

This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.

We can detect chaos even in a system in which everything seems determined.
Lorenz attractor provides evidence that there is order behavior in a chaotic system.
If the stock market is chaotic, it does not mean that it is not predictable, and I Know First provides stock market forecasts based on chaos theory approaches.

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Tali Soroker is a Financial Analyst at I Know First.

Summary

There is a notable difference between chaos and randomness making chaotic systems predictable, while random ones are not
Modeling chaotic processes are possible using statistics, but it is extremely difficult
Machine learning can be used to model chaotic processes more effectively
I Know First has employed artificial intelligence and machine learning in order to make predictions in the stock market
Definitions for underlined words can be found in the Glossary at the end of the article

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Investment Selection Using AI Predictive Algorithm
April 9, 2020

Tali Soroker is a Financial Analyst at I Know First.

Summary

Chaotic systems revisited – see original article here
Understanding the stock market as a chaotic process
What is a model and what is a multivariate time series?
How is machine learning used to create an efficient/effective model For stock market forecast
Considering higher dimension data sets and time complexity

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“Our intelligence is what makes us human, and AI is an extension of that quality.” – Yann LeCun

A growing fear in the financial sector is that robots will soon replace quantitative hedge fund managers and traders.
Potential uses for AI within the financial sector include ‘Algo-trading’ and portfolio management.
To date very few financial institutions are confident to grant full managerial control to a machine.
The I Know First Market Prediction System models and predicts the flow of money between the markets.