Top Mega Cap Picks

This stock market forecast includes the best stocks determined by the algorithm with a market capitalisation of more than $100 billion.

• 10 Best Mega Cap stocks for the long position
• 10 Best Mega Cap stocks for the short position

Package Name: Mega Cap Stocks
Forecast Length: 1 Year (01/19/2015 – 01/19/2016)
I Know First Average: 16.59%(Long), 25.26%(Short)

The best performing stock in the 1 year forecast from January 19th, 2015, for the long position was AMZN which had a strong return of 97.59% and GOOG with 38.13%. For the short position was BHP and NOV also offered strong returns of 53.70% and 47.13%. The I Know First average was 16.59% (long) and 25.26% (short), beating the S&P 500 return of -6.84%

How to interpret this diagram:

Algorithmic Stock Forecast: The table on the left is the stock forecast produced by I Know First’s algorithm. Each day, subscribers receive forecasts for six different time horizons. The top ten stocks in the 1-month forecast may be different than those in the 1-year forecast. In the included table, only the relevant tickers have been included. A green box represents a positive forecast while a red represents a negative forecast. The boxes are then arranged according to their respective signal and predictability values (see below for detailed definitions).

Forecast Performance: The table on the right compares the actual stock performance with I Know First’s prediction. The column titled “Forecast” shows which direction the algorithm predicted, and the column “% Change” shows the actual stock performance over the indicated time period. The “Accuracy” column shows a “√” if the algorithm correctly predicted the direction of the stock or an “x” if the forecast was incorrect. The I Know First Average is the equal-weights average percent change of the stocks listed below, and the S&P 500 may be included for reference if relevant.

Signal: This indicator represents the predicted movement direction/trend; not a percentage or specific target price. The signal strength indicates how much the current price deviates from what the system considers an equilibrium or “fair” price.

Predictability: This value is obtained by calculating the correlation between the current prediction and the actual asset movement for each discrete time period. The algorithm then averages the results of all the prediction points, while giving more weight to recent performance. As the machine keeps learning, the values of P generally increase.

The Algorithm: The system is a predictive algorithm that is based on Artificial Intelligence (AI), Machine Learning (ML), and incorporating elements of Artificial Neural Networks and Genetic Algorithms. The system’s predictive analytics are self-updating and thus live. The algorithm is a powerful resource for any investor conducting black-box trading or algotrading.