Algorithmic Trading: Wisdom Of The Crowd vs. Algorithmic Trading

“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


  • 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

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An Overview of How To Use I Know First’s AI Forecasts for ETF Trading

In the following we give an overview of the construction and performance of ETF Portfolios constructed using I Know First’s Algorithmic Forecasts for the SPDR Sector ETFs. We present the construction and performance of:

  1. Portfolios which directly use the algorithmic signals generated to select the sector ETFs to invest in and to rebalance the portfolio
  2. Portfolios which use sector-level predictions computed by aggregating our forecasting algorithm’s daily forecasts for individual S&P 500 stocks
  3. Portfolios which combine the algorithmic forecasts with an equally invested benchmark to create long only strategies which allow investors to target desired alpha and beta statistics

We show that these portfolios register very good performance statistics over the analyzed time-horizon outperforming the benchmark.

Algorithmic Trading: How To Make A Systematic Trading Strategy

I Know First Presents At FinTech Aviv Meetup

I Know First Presents At FinTech Aviv Meetup

On August 7, I Know First CEO Yaron Golgher presented about I Know First at a FinTech-Aviv event focused of Capital Markets and Groundbreaking Wealth Management Solutions. The event was a means to explore the most recent trends in capital markets and included keynotes, presentations, and a panel with industry experts.

One of the groundbreaking management solutions was I Know First’s Daily Market Forecast

which provides a daily forecast and predictability indicator

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Machine Learning in Finance: I Know First’s Deep Learning Trading Strategies

Science fiction is now part of our everyday life as machine learning and artificial intelligence are being more and more embedded in our lives through functions such as visual and audio recognition performed by "digital intelligence" instead of human intelligence. I Know First applies machine learning in finance to predict the future state of the market, these predictions can be used for the development of deep learning trading strategies and result in investment portfolios with excellent returns and performance statistics as we will show below.

Algorithmic ETF Strategy Based on Daily AI Forecasts

In the following, we analyze the performance of our ETF Package by evaluating algorithmic ETF strategies which invest on a daily basis in the ETFs selected by our AI system and can easily be recreated by using the daily forecasts provided to clients.

We show that the I Know First algorithm’s signals including the costs of bid-ask spreads and commissions result in high-performing trading strategies with:

  • Returns of up to 58% in a 2-year time period
  • Alphas over 20%
  • Betas below 0.3
  • Sharpe ratios reaching 1.25

ETF Strategy

Press Release: Sector Rotation based Algorithmic Trading Strategies

Press Release

Press Release: Tel Aviv, Israel, September 11th, 2017 – Sector Rotation based Algorithmic Trading Strategies

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press release

Algorithmic Trading Strategies For European Stocks: Returns Up to 240%

In the following article we present an analysis of a series of trading strategies directly adoptable by I Know First clients and which have generated returns up to 240% over the period going from August 2015 to April 2017.
The strategies follow the algorithm’s signals and invest daily in the strongest ones from the package “European Stocks” hence resulting in a portfolio continuously in line with the program’s recommendations and with the evolving market.

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Algorithmic Trading Strategies