Category: Algorithmic Articles

Artificial Intelligence Stock Market: Algorithmic Analysis of Humans and Their Behavior

October 7, 2018

Tali Soroker is a Financial Analyst at I Know First.

Algorithms are being used every day to analyze human behavior and decision-making
Companies use these algorithms to reach relevant customers and expand their reach
AI could prove to be beneficial to employers seeking a diverse and successful company
Using Algorithms to analyze human thought process can help investors make profitable stock trades
Companies are using AI and algorithmic systems to analyze human behavior in the stock market to make accurate forecasts of stock trends

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3 Ways To Cluster Data Using Unsupervised Learning

October 5, 2018

This article was written by Julia Masch, a Financial Analyst at I Know First.

Highlights:

Understanding Unsupervised Learning
Types of Clustering and How To Implement Them
How I Know First Uses Clustering

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Stock Market Forecast: Chaos Theory Revealing How the Market Works

October 5, 2018

I Know First Research | May 8th 2014

How Can We Predict the Financial Markets by Using Algorithms? Common fallacies about markets claim markets are unpredictable. However, chaos theory together with powerful algorithms proves such statements are wrong. Markets are chaotic systems with complex dynamics, yet to a certain extent we can make valid stock market forecasts. Using these forecasts generated by cutting-edge predictive algorithms together with a careful risk management strategy may give a trader a significant competitive advantage.

Markets Are Complex Systems

Looking at the common fallacies about stock markets, we can see two major groups. The first group is connected to the classical economic theory, which claims that markets are 100% efficient, and as such unpredictable. However, trying to make predictions regarding the markets is useless anyway, as no stock can be possibly be a better deal than another. Both of them are efficient and everybody in the market has perfect information available to them. From our daily lives it is obvious that this does not truly reflect reality. There are people who actually profit trading stocks, which should not be possible in this idealistic market of economy theories.

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Arbitrage Trading: How Hedge Funds Should Use AI Based Algorithms For Arbitrage Trading

September 30, 2018

The article was written by David Shabotinsky, a Financial Analyst at I Know First, and enrolled at an undergraduate Finance program at the Interdisciplinary Center, Herzliya.

Arbitrage Trading

“All things excellent are as difficult as they are rare.”-Benjamin Graham, The Intelligent Investor Free lunch, or riskless profit. The idea seems theoretically impossible, as any intro economics course will explain that free lunch is impossible. This article will come to explain; why seemingly riskless strategies should incorporate AI based algorithms. Summary:

Arbitrage opportunities are hard to locate but knowing which types exist can help investors watch for them
Hedge Funds today too many errors for the high costs that accompany them
I Know First Algorithm’s competitive advantages and usage in the market can subsitute/assist hedge funds
Barrier of entry for algorithmic trading firms

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Machine Learning Stock Market: Business Strategy & Machine Learning in the Financial Industry

September 23, 2018

This article was written by David Shabotinsky, a Financial Analyst at I Know First, and enrolled at the undergraduate Finance program at the Interdisciplinary Center, Herzliya.