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

Summary

  • 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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Algorithmic Trading: Evolution of Algorithmic Trading

Tomer Solel is a Financial Analyst at I Know First. He graduated from Cal Poly Pomona with a bachelor's degree in applied mathematics.

  • The two methods used for algotrading are high frequency and quantitative trading.
  • The steps in understating machine learning include providing framework, giving examples to learn from, fitness function, sequential, and generalization requirement. Everyone wants to report results as accurate as possible and as fast as possible.
  • Genetic algorithm is another type of algorithm. The steps in a genetic algorithm include combination, mutation, crossover, and selection; hence the name “genetic algorithm”.
  • Our algorithm predicts over 3,000 markets in 6 different time horizons for short and long term for stocks, commodities, ETF’s, interest rates, currencies, and world indices.
  • The I Know First daily market heat map includes signal and predictability for different stocks, and recently, in a swing trading report, the I Know First Algorithm Performance crushed the S&P 500’s performance.


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IBM Stock Prediction: How IBM Cloud Can Attract More Customers

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Summary:

  • Based on its First Quarter 2019 earnings report, IBM continues to suffer from declining revenue.
  • IBM’s cloud computing business is not growing fast enough to offset the decline in mainframe hardware/software.
  • Management should consider buying Corel Corporation so it can compete better against enterprise SaaS leaders Microsoft and Adobe.
  • Corel has software products which can compete against Adobe Creative Cloud and Office 365.
  • After buying Corel Corporation, IBM can rename and market CorelDraw, CorelCAD, and WordPerfect suites as SaaS-only products.

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QCOM Stock Prediction: Why Qualcomm Won Its Patents Licensing Dispute Versus Apple

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Summary:

  • My August 2017 prediction came true yesterday. Apple surrendered and settled its modem-related legal dispute with Qualcomm.
  • Qualcomm shot up 23% during after-hours trading after the April 16 announcement that Apple and Qualcomm completed an out-of-court settlement of their legal battle.
  • Apple has tons of cash. It can afford to fight years-long of litigation against Qualcomm. Unfortunately, Apple’s current smartphone modem supplier Intel is a laggard in 5G modem design.
  • Qualcomm previously refused to supply its 4G modems to 2018 iPhones. Apple got scared that Qualcomm will again refuse to supply its 5G modems to 2019 and newer iPhones.
  • Apple had to capitulate and settle with Qualcomm so it can protect its iPhone business. 5G connectivity is the emerging de facto requirement for luxury smartphones and tablets.

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NVDA Stock Forecast: Why The $129 Jetson Nano Is An Important Tailwind For Nvidia

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Summary:

  • I Know First still touts a very bullish 12-month market trend forecast score of +345.89 for Nvidia’s stock.
  • This is in spite of NVDA’s 38.35% YTD price return.
  • This hyper-optimism of I Know First must be due to the undisputed leadership of Nvidia in GPU-centric  Artificial Intelligence hardware and platforms.
  • The recent launch of the $99 Jetson Nano Developer Kit and $129 Jetson Nano Module likely made Nvidia the early leader in edge AI computing.
  • The Jetson Nano Module has current commercial/industrial applications. For example, this $129 Nvidia edge AI hardware can be marketed in the fast-growing training and video surveillance industries.

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Algorithmic Trading vs Mass Psychology

Tomer Solel is a Financial Analyst at I Know First. He graduated from Cal Poly Pomona with a bachelor's degree in applied mathematics.

Algorithmic Trading vs Mass Psychology


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MSFT Stock Forecast: Why Microsoft Needs A More Popular Browser

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Summary:

  • We all know why Microsoft was forced to build a web browser based on Google’s Chromium code.
  • Microsoft desperately needs more people to use its Edge browser.
  • Using its rival’s very popular browser universal framework Chromium to build a new version of Edge is smart.
  • The more people who use Microsoft software/apps, the better it is for the company’s growing digital advertising business.

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