I Know First Review Weekly Algorithmic Performance: September 24th, 2017

I Know First Review

On September 24th, 2017, our weekly newsletter was sent out to all I Know First subscribers, which can be found here. Below, you may find the I Know First Review, highlighting the algorithm’s performance for this past week.

I Know First Review

I Know First sends a weekly newsletter every Sunday to all the I Know First subscribers, highlighting the past week’s performance in all the covered financial markets, i.e. equity positions, currencies, and commodities. Additionally, the weekly newsletter includes analysis and updated news reports regarding prominent firms such as Apple, Yahoo, Baidu, and more which our subscribers are able to utilize for their investment strategies. The in-depth analysis is provided by the I Know First financial analysts, who are often times also top rated authors for prominent financial sites such as Seeking Alpha.

In general, the algorithm is based on Artificial Intelligence and Machine Learning with elements of Artificial Neural Networks and Genetic Algorithms incorporated in it. This means the algorithm creates, deletes, and modifies relationships between different financial assets to optimize its predictive accuracy. Based on the relationships and the latest market data, the algorithm calculates its forecasts. Since the algorithm learns from its previous forecasts and is continuously readjusting the relationships, it adapts quickly to changing market situations.

For a more detailed explanation, regarding the algorithm, click here.

As highlighted in the newsletter, our subscribers had seen superb returns, whether long-term or short-term. Our investors are able to tackle the market head on with all its recent uncertainties and achieve premiums well over those offered by institutional and classic fund managers. For example, on September 22, 2016, we published a year long forecast of our Fundamental – Low Short Ratio Stocks with a bullish signal for Taseko Mines Limited (TGB)Within 1 year, 7 of the 10 predictions revealed themselves to be correct and Taseko Mines Limited (TGB) registered a return of 268.12%.

Every week the top performing financial instruments are highlighted, as shown below from this past week’s newsletter.

1. 3 Day Forecast Returns Up to 48%?

I Know First self-learning algorithm provided its subscribers with excellent returns in its 3 day forecasts. In such case with Fundamental – Low Short Ratio Stocks, the algorithm accurately selected stocks yielding as high as 48.05%. In the Stocks Under 5 Dollars forecast, the highest performing stock pick was SIFY with a return of 43.14% in 3 days. The forecast’s average of 4.61% surpassed the S&P 500’s 3 day return of 0.44%. The Tech Stocks revealed its stock pick, SIFY with an impressive return of 43.14% in only 3 days.

Package Name: Fundamental – Low Short Ratio Stocks
Recommended Positions: Long
Forecast Length: 3 Days (09/18/2017 – 09/21/2017)
I Know First Average: 6.09%

Stock Ranking

2. 7 Day Forecast With Returns Exceeding 30%

A mix of utilizing genetic algorithms and Artificial neural networks assisted I Know First based AI based algorithm in achieving impressive results within short-term 7 day forecasts. In the Tech Stocks forecast, the highest performing stock was SIFY with an impressive return of 32.79%. The forecast average had a return of 7.18% compared to the S&P 500’s return of 1.72%. In the Stocks Under 5 Dollars forecast, the highest performing stock came from ACTG. The stock returned investors 31.17%. In the Small Cap Stocks forecast, ACTG also returned investors 31.17%.

Package Name: Tech Stocks
Recommended Positions: Long
Forecast Length: 7 Days (09/11/2017 – 09/18/2017)
I Know First Average: 7.18%

Stock Price Predictor

3. 14 Day Forecast Reveals Stock Pick Yielding Beyond 70%.

Data Mining has been an invaluable tool for I Know First to produce accurate predictions. An example of its use is displayed in the Pharma Stocks forecast, the forecast accurately predicted bullish performances from XOMA with a return of 70.75%. In addition, the forecast also had an accurate forecast for PTN, yielding investors with a respectable 39.07% return. In another Computer Industry Stocks forecast, SIFY had a high 14 day return of 65.97%. Additionally, the I Know First algorithm had an impressive average return of 8.31% in the Automotive Stocks forecast , while the S&P 500 only managed a return of 1.66%.

Package Name: Pharma Stocks
Recommended Positions: Long
Forecast Length: 14 Days (09/04/2017 – 09/18/2017)
I Know First Average: 11.54%

Deep Learning Trading

4. 1 Month Forecast Achieves Returns Topping 175%

I Know First’s machine learning algorithm helped successfully create a 1 month forecast achieving 175+% returns. The Medicine Stocks forecast featured the stock XOMA, which achieved an impressive return of 176.60%. The forecast’s overall average of 25.00% exceeded the S&P 500’s return of 3.09%. The BioTech Stocks forecast also had respectable returns from XOMA and SGMO. These stocks returned investors 152.84% and 34.15%, respectively. In the Fundamental – Low Short Ratio Stocks forecast accurately selected IO with a return of 74.77%. Additionally, GOL and RADA achieved high returns of 36.14% and 30.22%, respectively.

 Package Name: Medicine Stocks
Recommended Positions: Long
Forecast Length: 1 Month (08/21/2017 – 09/21/2017)
I Know First Average: 25.00%

Medicine Stock

5. AI 3 Month Forecasts Produced Profits Exceeding 160%

Utilizing AI, I Know First has selected a number of lucrative stock picks. In the BioTech Stocks forecast, DVAX and SGMO yielded investors 164.33%, and 97.99%, respectively. The I Know First algorithm achieved an average package return of 36.18%, while the S&P 500 only managed a 2.91% return. In the Small Cap Stocks forecast, DVAX had the highest return of 135.03%. In the Stocks Under 20 Dollars forecast, DVAX also had the highest return, netting 119.25%. In addition, FOLD and IPXL had respectable returns of 46.98% and 41.98%, respectively.

Package Name: BioTech Stocks
Recommended Positions: Long
Forecast Length: 3 Months (06/18/2017 – 09/18/2017)
I Know First Average: 36.18%

Biotech Stocks To Watch

6. 1 Year Forecast With Stock Picks Reaching Returns of 265%

In a 1 year forecast, I Know First revealed an interesting investment opportunity in the Fundamental – Low Short Ratio Stocks forecast, it achieved a return of 268.12% from TGB. This forecast also scored an impressive result from SVXY and GOL. These stocks achieved a return of 146.74% and 124.22%, respectively in 1 year. In the Tech Stocks forecast, MU had an impressive return of 112.23%. Finally, the Options forecast achieved a 102.69% and 85.59% return from MU and NFLX, respectively.

Package Name: Fundamental – Low Short Ratio Stocks
Recommended Positions: Long
Forecast Length: 1 Year (09/22/2016 – 09/22/2017)
I Know First Average: 66.70%

Best Long Term Stocks

Article Summary

1. Machine Learning Hedge Fund: Artificial Intelligence, Algotrading, and Hedge Funds                                                                                                                                                         

At the end of 2006, a sizeable hedge fund, Amaranth Advisors was taken down by a wrongly placed bet on the weather. The fund lost $6 billion dollars after a mild winter led to rapidly decreased natural oil prices. Hedge funds operate based on high risk, high return trades but this also means little transparency for investors and the risk of one bad call leading to the loss of billions of dollars. Hedge funds are private investment funds that work with higher risk trades that bring much higher returns than mutual funds or other investment entities. Read More

2. Algorithmic ETF Strategy Based on Daily AI Forecasts                                                   

In the following, we use the daily top 10 signals generated by our algorithm for ETFs to trade the respective ETFs long and short. We rebalance the portfolio of ETFs based on the daily forecasts, thus maintaining our portfolio in line with the market trends identified. We apply two basic filters to the algorithmic signals. First, we eliminate outliers from the top 10 signals in order to control for signals which are strongly out of line with the remainder of the forecast and second, we filter out ETFs which have had overnight moves of over 2% since in this case, the asset has already moved and the opportunity is no longer available. Read more.

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

Essentially, what arbitrate entails, is if a security is trading in two different markets simultaneously, with different prices. The arbitrageur can then lock in the ‘difference’, by shorting the higher price and buying long the lower priced one, simultaneously. As a result of globalization and currency pegging, arbitrage has become much more complicated to capture in its original form. Many individuals today as well consider other forms of arbitrage outside the financial market, such as drop shipping arbitrage and/or international trading. Read more.