Stock Market Forecast: Chaos Theory Revealing How the Market Works

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.

Stock Market Predictions: Where In The Feedback Loop Is Your Portfolio?

Summary

  • Why you can beat the market, even when it does not seem so.
  • The importance of loops, patterns, and predictable events.
  • Random events are don’t measure risks, and should not affect your decision making.
Some traders follow the trend, and some go against it. At IKnowFirst we work on algorithmic strategies which are neither, we simply try an asses where the next opportunity is. If this means to do what everyone else does, than why not. If it means going against when everyone else does, this is also fine. The tricky part is determining where this opportunities are, this article will discuss how to find opportunities in what can seem as total randomness.

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How To Recognize A Stock Market Bubble Before It Bursts

taliTali Soroker is a Financial Analyst at I Know First.
stock market bubble

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ETF Investing by Aggregating I Know First’s Algorithmic Trading Signals

In the following article we continue our analysis on computing sector-level predictions by aggregating I Know First’s stock-level forecasts and using these aggregated predictions to build strategies for sector ETF investing. In particular we:
  1. Update previously presented strategies which compute sector-level predictions by comparing the distributions of the long and short forecasts of the stocks within each sector
  2. Present new ways of aggregating our forecasts using simpler rules and show the performance of various strategies based on these
  3. Show that both the previously developed and the new, simplified decision rules give rise to portfolios that beat the benchmark and register excellent risk statistics

I Know First Stock and ETF Coverage Update

I Know First currently generates daily predictions for over 8000 investments, 89% of the MSCI All Country World Index, 106 Equity ETFs, and is continuing to expand its coverage.

Investing in Artificial Intelligence

Samantha Fischler is a Junior Financial Analyst at I Know First.

Investing in Artificial Intelligence

Summary
  • I Know First’s algorithm is largely based off of artificial intelligence
  • Many mid and long term investors and buy-side firms engaging in high frequency trading
  • What robo advisors do for us
  • Artificial Intelligence's place in the world of banking
  • Companies are engaging in mergers and acquisitions to make themselves more tech savvy

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Cheniere Energy Stock Prediction for 2018: Strong Market Positioning and Unparalleled Potential

The article was written by Vladimir Zaslavsky, a Financial Analyst at I Know First. Vladimir is completing a Bachelor of Commerce Scholars Program and Bachelor of Economics at Monash University – majoring in Finance, Economics and Accounting.

LNG Stock Forecast for 2018

Summary
  • LNG strongly positioned for 2018 by expansion and demand
  • Forecasted to gain significant market share
  • I Know First Bullish forecast for LNG in 2018

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