This article was written by the I Know First Research Team.
Read The Full Premium ArticleI 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.
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.
The concept of short selling is often seen as something immoral or alarming to many traders. Traders often assume that because mutual funds and financial planners go long, it is more correct to do. When you short sell you are actually borrowing a stock at a fee, and selling it on the market. At some point the trader “covers” his sale by repurchasing the stock at the current market price, and returning the shares to the lender. If the price is lower the short seller makes a profit, else he makes a loss.
This article was written by the I Know First Research Team.Read The Full Premium Article 
Tomer Solel is a Financial Analyst at I Know First. He graduated from Cal Poly Pomona with a bachelor's degree in applied mathematics. 
Read The Full Premium Article 
Introduction:
Allocating your portfolio in a way that maximizes returns and minimizes risk can be tricky. In order to reduce volatility, high yield strategies are often ignored. In theory, if you were able to pick one stock a day you were most certain will go up - in order to maximize expected returns you would only invest in that stock. The downside of course is also maximizing your risk exposure.In this article I will go through a method of allocating funds using the I Know First artificial intelligence system. This will link between algorithmic signals, and actual market buy/sell decisions. Before you continue reading you should decide if any of these points don’t suit you well.
The main advantage of this portfolio allocation is that it is a day trading model which is 100% systematic. Both the investment buy/sell decisions and allocation are based off the signal data; allowing any investor the peace of mind in separating emotion from trade decisions.
This article was written by Maria Grishaev, Analyst at I Know First.
In the last decade, the usage of machine learning and artificial intelligence based trading algorithms grew with the rapid development of computational powers. It makes everyone to wonder - do we take the maximum advantage technology gives us or not. In this article I’m going to discuss the current trend of usage and what are the challenges we are going to need to overcome in order to utilize all the benefits of this advanced technology.
Read The Full Premium ArticleThis article was written by the I Know First Research Team.
Recently, several articles expressed opinion that artificial intelligence and machine learning will never beat the stock market. According to a report published by Allied Market Research, the global neural network market was valued at $7.03 billion in 2016, and is estimated to reach at $38.71 billion by 2023. The rapid development of computational powers and the fast pace of changes in the stock market forces investors to wonder whether they should trust machines to predict the stock market or continue to use old-fashioned methods.
Read The Full Premium Article
Disclaimer:
I Know First-Daily Market Forecast, does not provide personal investment or financial advice to individuals, or act as personal financial, legal, or institutional investment advisors, or individually advocate the purchase or sale of any security or investment or the use of any particular financial strategy. All investing, stock forecasts and investment strategies include the risk of loss for some or even all of your capital. Before pursuing any financial strategies discussed on this website, you should always consult with a licensed financial advisor.