Algorithmic Trading: Wisdom Of The Crowd vs. Algorithmic Trading

June 15, 2025

“One of the biggest advantages of algorithmic trading is the ability to remove human emotion from the markets, as trades are constrained within a set of predefined criteria. This is an advantage because humans trading are susceptible to emotions that lead to irrational decisions. The two emotions that lead to poor decisions that algorithmic traders aren’t susceptible to are fear, and greed.”
“Advantages of Algorithmic Trading,” NASDAQ

Summary

What is the wisdom of the crowd?
How can the crowd misdirect investors?
How does algorithmic trading address the dangers of “following the herd”?

What is the “wisdom of the crowd”?

Could a crowd, provided that it is large and diverse enough, produce en masse an estimate that outperforms that of an individual expert? American journalist James Surowiecki would

Emotions vs. Reason in Stock Trading: When the Market’s Cheering but the Signals Say Run

April 11, 2025

Co-Founder & CTO of I Know First Ltd. With over 35 years of research in AI and machine learning. Dr. Roitman earned a Ph.D from the Weizmann Institute of Science

Highlights

How AI helped Dr. Roitman overcome emotional bias and avoid the 2025 market crash
A personal journey from chemistry to building a professional-grade predictive model for stock markets
Why emotional discipline — not just data — is key in navigating turbulent financial markets

How I got saved from most of the market crash.

1. I’m not a rational trader, more of an emotional one. In my youth I started investing or you’d say trading. It was not very successful, to say the least. In the 1980’s I bought shares in a little known company Apple Computers. I sold them when I thought IBM was going to kill them.

2. In the early 1990s I bought my first real computer, a PC AT. When windows and MS

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Drying Out Dark Pools and Forecasting Trading Volume

September 5, 2019

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

Highlights:

Trading Volume Definition
Delving Into Dark Pools
In The I Know First Pipeline: Forecasting Trade Volume

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Growing Rich 2.0: AI-Based Tools For Wealth Managers

July 14, 2019

This article was written by the I Know First Research Team.

Summary:

Wealth management industry is disrupted by the rise of AI.
New machine-learning based strategies challenge the conventional approaches and dogmas of the sphere.
Rather than competing with the machines, wealth managers need to embrace them as a new tool in their arsenal.

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Neural Networks Pave a Way in Finance

June 27, 2019

This article was written by Megan Gomberg, a student at the University of Illinois.

When I think of neural networks, I typically begin to picture a stream of fast-moving neurons all around the brain. How these neurons interact with each other and the surrounding cells effect our everyday constant decisions and actions taken each day. The neural network system that relates to finance consists of a certain artificial intelligence sequence that attempts to mimic the human brain.

Source: Pixabay.com

What it is:

Neural Networks are computing systems with interconnected nodes that work

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Big Funds, Bigger Data: 5 Companies That Utilize AI In Wealth Management

May 14, 2019

This article has been written by the I Know First Research Team.

Wealth management, the trade and art of, in absolute terms, increasing the client’s affluence through a variety of investment-related services, is reshaping itself as the new era comes knocking at the door – and with it, come the high-net-worth individuals (HNWIs) of the millennial generation, with their taste for all things high-tech and an individualist attitude. But while this new clientele, along with other features of this day and age, be it the abundance of buzz to navigate around when developing tailored investment solutions

Artificial Intelligence Article

Artificial Intelligence: How Modern Financial institutions Use AI?

March 28, 2019

This article was written by Graham Ellinson, a Financial Analyst at I Know First.

How Modern Financial institutions Use AI?

“Some people call this artificial intelligence, but the reality is this technology will enhance us. So instead of artificial intelligence, I think we'll augment our intelligence.” — Ginni Rometty

Summary

The original use of AI by Banks was for fraud detection.
Aside from fraud detection many financial institutions have been slow to implement AI.
The UK bank Barclays have started experimenting with AI after becoming the flagship customer of AI simulation firm Simudyne Technology.
I Know First are unique: providing an AI product that boasts successful performance in daily market forecasting and wealth management solutions.

Artificial Intelligence is a word that gets thrown around a lot these days. Especially with the entrance of AI into the home with the likes of Amazons Alexa and Apples Siri it is now something that regular consumers interact with on a day-to-day basis. What this means is that it can lead to common misconceptions about AI and its uses. To some it is a smart assistant to others it is that annoying machine who answers the phone when you call customer services. However, AI has a wide range of uses and surprisingly in some cases still limited.

Source: www.iqlect.com