Stay Ahead Of The Curve: AI Weekly
AI-Driven Algorithmic Trading: Disrupting The Disruptors
The investment world has recently gone through at times a quiet and secretive, yet dramatic revolution as machines entered an area where the man used to reign (and trade) supreme. The first major step in the process came in the late 90s as algorithmic trading came in on the back of advanced quant funds and the first high-frequency traders. Now, as the world is embracing the artificial intelligence revolution, another tectonic shift is on the way.
Enter the age of AI, and with it, new opportunities for smarter trading. The investment world has not been blind to this, and predicting the stock market is a major challenge in contemporary machine learning.
One of the leaders in this sphere is I Know First has, an Israel-based company that has developed a deep learning AI delivering daily forecasts for over 10,500 financial instruments, including stocks, ETFs, and currencies.
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Algorithmic Trading: I Know First Strategy Tutorial
We are now exploring the possibility of managing a hedge fund. To get an idea of potential profitability, we are developing and conducting backtests.
The system forecasts multiple stocks, each in six different time ranges, and each signal comes with predictability. The number of variables per stock is 12, and we have hundreds of stocks to consider. Thus there is a multitude of possible ways to trade this system. We do not know of any standard backtest that fits our system and have to develop our own.
We encourage you to review your historical data and trades and see how you could optimize them by using this algorithmic trading strategy.
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Sector Rotation Strategy And AI: Match Made In Investment Heaven?
It is no secret that bigger institutional investors are not really known for high-risk tolerance. After all, going all aggressive with the millions and millions of your clients’ funds is akin to putting your best suit on as you head to play soccer with your friends. That is unlikely, and even less likely is the prospect that the investors would be happy with losing their money due to things going horribly wrong. Thus, the Big Boys Club can be reasonably expected to opt for strategies that do not come equipped with major risks, and among them is an approach that is known as Sector Rotation – and this is what we will be looking at today.
As we noted, Sector Rotation is largely about crunching the numbers to pick out the best moment for re-balancing and then doing the same to identify the best sectors to move into. Thankfully, in this day and age, there is a technology that is amazingly good with all that involves complex statistical inferencing – and that, of course, is artificial intelligence.
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AAL Stock Forecast: The perspective of Airline Company to gain altitude after the turbulence zone
American Airlines Group Inc. (AAG), a Delaware corporation, is a holding company, and its principal, wholly-owned subsidiaries are American Airlines, Inc. (American), Envoy Aviation Group Inc., PSA Airlines, Inc., and Piedmont Airlines, Inc. The company primarily operates in two segments: Mainline and Regional affiliates. In 2020, the company reported operating revenue of $17.33 billion with a decrease of 62%. The company common stock is listed on The Nasdaq Global Select Market under the trading symbol “AAL”, the last current price on April 1st, 2021 is $23.86.
I take a buy-side on AAL stock because the stock holds a positive DCF forecast resulting in a $26 target price, i.e. around 9% upside potential. American Airlines is one of the leading international companies that currently decreasing costs and looking for reserves to improve operational efficiency. Today, a situation with the pandemic remains as a key component that determines future airline demand and consequently the stock price.
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Stock Forecast Success On Air: News 13 Channel Visits I Know First And Builds Winning Portfolio
Tel-Aviv is home to many an ambitious start-up seeking to revolutionize the world through advanced tech and sophisticated know-how. Israel’s ingenuity and high-tech savvy proved by success stories like Riskified and Wix. But in early September 2019, it was I Know First, a Tel Aviv-based AI stock forecast company, that the Israeli News 13 TV channel visited to shoot a story for the broadcast. The idea was to find out if the company lived up to its promise of delivering accurate stock market forecasts, relying on an advanced AI.
Spoiler alert: it did.
The idea for the story was quite simple: the journalists would show up at the company’s Tel Aviv office, get a short brief about I Know First and its predictive stock forecast AI and then try to build two portfolios using the AI predictions. More specifically, the Top 20 stock picks package would be used for the experiment. The first portfolio would be built for passive investment, which would just stay untouched throughout the review period, and the other – for active investment, which would see buy and sell orders placed on a daily basis. Then, the journalists and third-party experts, whose insights would add to the objectivity of the test, would see how the two portfolios perform and whether they would beat the S&P500 index.
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Letter from the CEO
Dear clients,
This week we saw some specific sectors with good relative performances. While the energy sector registered a 2.69% loss, sectors such as technology and communication services went well, returning 3.69% and 3.62% respectively. But did I Know First algorithm predicted it?
Of course, it did.
In our 3 days time horizon Tech Stocks Forecast, the AI correctly predicted the 15.78% return from MARA, alongside another six stocks. The package average, 4.35%, was more than three times better than the S&P 500 performance in the same timeframe.
Alongside, the same package performed even better in a 7 days time period. The AI correctly predicted 8 out of 10 trades. The highest trade return came from MARA, at 37.56%. AMAT and DXC followed with returns of 11.0% and 9.5% respectively. This package also presented an average return of 7.63% versus the S&P 500’s performance of 2.59%.
At the same time, technology was the best sector in relative performance when we look into a 1-month timespan. Our Tech Stocks Forecast from the same period registered an average return of 24.70%, also three times higher than the S&P 500’s. MARA was again the highlight with a 76.70% yield, while UCTT and KOPN also delivered nice results: 4791% and 39.18% respectively.
If we look into the sector rotation strategy, our algorithm is the perfect fit. At any given point, I Know First AI is capable of identifying the best sector at the moment.
In our Hedge Fund Stocks Package, there were many high-performing trades, and the algorithm correctly predicted 10 out of 10 trades. GME was the highest-earning trade with a return of 983.77% in 3 months, while other notable stocks were PDCE and AEO with a return of 68.99% and 50.43%. The package had an overall average return of 125.93% at the same time S&P 500 returned 10.19%.
This last package shows us that at the same time the S&P 500 registered a good return in the first quarter of 2021, our algorithm performed even better. Historically, a good Q1 for S&P 500 means a positive return for the rest of the year 86.7% of the time. Following the tendency, we can expect even greater results for our algorithm.
You can get access to all our packages right now, including the best investment forecast for Q2. Don’t miss the new opportunities!
Warmest Regards
Yaron Golgher, Co-Founder and CEO
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Q&A With I Know First
I Know First’s Daily Market Forecasts And How to Interpret the Numbers
Q. What is the forecast date?
A. The forecast date is the date the algorithm released this set of predictions.
Q. What is the time horizon?
A. The time horizon is the suggested period of time to hold the suggested stocks. When we calculate the forecast performance, we do so from the forecast date through the end of the time horizon.
Q. What is the S&P 500 stock prediction and why do you include it?
A. The S&P 500 is the major US index and is the general indicators for the direction of the US stock market. If the algorithm predicts that the S&P 500 will go up, then it is a good sign that the stock market will generally increase. It helps in decision making. It is generally preferable to go long the Top 10 stocks when the S&P 500 has a positive prediction and to go short the 10 stocks on the bottom of the table when the S&P 500 has a negative prediction.
Q. What is the accuracy (checks and x marks)?
A. If the algorithm correctly predicts the direction of a stock’s movement, a checkmark is placed next to the stock’s return and if the algorithm is incorrect in its prediction, an x mark is placed next to the stock’s return.
Q. What is the return?
A. The return is the percentage movement of each stock multiplied by 1 if the algorithm suggested a long position or multiplied by negative 1 if the algorithm suggested a short position. In other words, if the algorithm correctly predicts the direction of the stock, the return is the positive percentage change of the stock, and if the algorithm incorrectly predicts the direction of the stock, the return is the negative percentage change of the stock. The return is the last end of the day price at the target date of the forecast VS the price when the forecast was sent (the end of the day price of the previous day).
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Commodities, Gold & Currencies
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Gold Outlook:
Returns up to 0.51% in 3 Months
April 11 | Read More
Commodity Outlook:
Returns up to 6.57% in 14 Days
April 8 | Read More
Exchange Rate Forecast:
63.46% Hit Ratio in 1 Year
April 11 | Read More
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Gold Price Prediction:
Returns up to 1.37% in 3 Days
April 11 | Read More
Currency Forecast:
62.75% Hit Ratio in 14 Days
April 8 | Read More
Commodity Price Forecast:
Returns up 143.39% in 1 Year
April 11 | Read More |
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| Find The Latest Top Commodities and Currency Pairs With AI Insight |
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Weekly Apple Stock Update
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In this week’s Apple stock news, we discuss a strong revenue for Apple supplier Foxconn. According to Yahoo Finance, Foxconn’s first-quarter revenues were at 1.34 trillion new Taiwanese dollars ($47.05 billion), up 44.5% year-over-year. However, this represented a 33% decline from the seasonally strong fourth quarter.Plus, according to MacRumors, Apple’s Podcasts platform recently surpassed 2 million titles. However, a quarter of those shows have only published one episode and can be classified as “once-and-done” podcasts.Finally, according to SensorTower, the average amount spent in apps per active iPhone in the United States grew to $138 in 2020, an increase of 38 percent year-over-year. This includes spending on in-app purchases and premium apps but excludes commerce apps such as Amazon, rideshare services like Uber, or other apps where purchases are not directly processed by the App Store.
Read more.
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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.
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