Press Release: Sector Rotation based Algorithmic Trading Strategies

Press Release

Press Release:  Tel Aviv, Israel, September 11th, 2017 – I Know First presents an analysis of Sector Rotation based Algorithmic Trading Strategies.


Top analysts at I Know First made an in-depth analysis of our self-learning algorithm. The analysis conducted is called Sector Rotation, which is used to determine which equity sectors will outperform the market in the short term and overweight those sectors in order to generate smart-beta.

The analysis revealed very promising results. Examples include: Sharpe ratios reaching 1.48 (vs. a SPY benchmark of  0.75), returns of up to 70.5% in a 2-year time period (vs. 18.10%), and the possibility of trading up to 195 million US dollars. See the table below for the full results (click on the table to enlarge):

Strategy Performance Table

*Sharpe Ratio is a measure of the risk adjusted return of an investment. It is computed by dividing the return of the portfolio minus the risk-free rate by the standard deviation of the portfolio returns. The higher the ratio the more return the portfolio provides adjusted for its risk level.
**Avg. Daily Tradeable Capital is computed by averaging the daily sum of the dollar-volumes of the assets in the portfolio multiplied by 2.5%. It is a rough estimate of how much capital can be traded on a daily basis assuming we can trade 2.5% of each assets daily dollar volume.

Take a look at the full analysis here.

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Press Release

I Know First, Ltd. is a financial technology company that provides daily investment forecasts based on an advanced, self-learning algorithm. Thus, the company’s algorithm predicts over 3,000 securities (and growing). Thus, it has capabilities to discover patterns in large sets of historical stock market data.

The underlying technology of the algorithm based itself on Artificial Intelligence. It also based itself on machine learning and incorporating elements of artificial neural networks and genetic algorithms. Moreover, the algorithm generates daily market predictions for stocks, commodities, ETF’s, interest rates, currencies, and world indices for the short, medium and long-term time horizons.

For more information, visit I Know First.