This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.
Summary:
We can detect chaos even in a system in which everything seems determined.
Lorenz attractor provides evidence that there is order behavior in a chaotic system.
If the stock market is chaotic, it does not mean that it is not predictable, and I Know First provides stock market forecasts based on chaos theory approaches.
This algorithmic article was written by Yutong Li – Analyst at I Know First, Master's candidate at Brandeis University.
Highlights:
Although Efficient Market Hypothesis has been a dominated financial theory for years, it fails to give a sensible reason and interpretation of the financial crashes and crises that occurred
A more comprehensive financial theory - Fractal Market Hypothesis is capable to explain these crises and provide a clear-cut description of the financial markets
Fractal Market Hypothesis puts forward the idea of self-similarity and stability in the market when it consists of investors from a wide range of investment horizons
FMH verifies the root of technical analysis under the idea that history can repeat, and this process of pattern-finding can be efficiently attained by machine learning
On December 30, 2019, I Know First published an article covering the continued work of the I Know Firsts team, Yaron Golgher, Dr. Lipa Roitman, and Denic Khoronenko, as they write a chapter to be published in The AI Book. This book aggregates multiple expertise through crowd-sourced experts into a uniform volume that enforces the significance of artificial intelligence and how it can be utilized amongst financial services.
With great pleasure, we can announce the chapter titled “Finding Order In The Chaos: Investment Selection Using AI” has been published alongside various prominent
This article was written by the I Know First Research Team.
Summary:
What is Chaos Theory?
Earthquakes – An example of a Natural Chaotic System
Randomness vs Chaos
What makes a Chaotic System a Chaotic System
Modeling a Chaotic System
Can We Really Predict the Stock Market? Psychology of Trading and Feedback Loops
What is Chaos Theory?
In a chaotic system like weather, a tiny change can make a huge impact. Weather is predicted a few days in advance because small changes in input can produce dramatically different results.
The most commonly used example to explain chaos theory is the butterfly effect. It says that a butterfly flapping its wings on one end of the world can give rise to a hurricane in another part of the world. It sounds bizarre but it illustrates the huge impact small changes in the factors can have on the outcome.
Without going into too much mathematical details, I would like to briefly explain how
This algorithmic article was written by Yutong Li – Analyst at I Know First, Master's candidate at Brandeis University.
Highlights:
Despite the controversial opinion on whether Artificial Intelligence could beat the market, AI could still win in many aspects
I Know First’s proprietary AI-powered algorithm can make accurate predictions and smartly approach the stock market uncertainty
Based on the 1-year evaluation summary, I Know First has predicted ^IXIC, SPY, and QQQ with 100% accuracy in a 1-year time horizon, and has a performance over 62% for for all time horizons
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