Volatility Forecasting Based on Machine Learning: Returns up to 23.07% in 7 Days

Volatility Forecasting

This Volatility forecasting is designed for investors and analysts who need predictions of the implied volatility for a basket of put and call options related to a specific index. It includes 8 volatility indices with bullish and bearish signals and indicates the best Volatility Index to trade:

  • Volatility indices for the long position
  • Volatility indices for the short position

Volatility Forecast
Package Name: Volatility Forecast
Recommended Positions: Long
Forecast Length: 7 Days (8/4/2019 – 8/12/2019)
I Know First Average: 12.35%
Volatility Forecasting
Volatility Forecasting chart

For this 7 Days forecast the algorithm had successfully predicted 8 out of 9 movements. The prediction with the highest return was ^GVZ, at 23.07%. ^VXO and ^VIX saw outstanding returns of 20.87% and 19.76%. The package had an overall average return of 12.35%, providing investors with a 14.02% premium over the S&P 500’s return of -1.67% during the period.

measures the market’s expectation of 30-day volatility of gold prices based on the options on the SPDR Gold Trust

Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First subscribers.

How to interpret this diagram

Algorithmic Stock Forecast: The table on the left is a stock forecast produced by I Know First’s algorithm. Each day, subscribers receive forecasts for six different time horizons. Note that the top 9 stocks in the 1-month forecast may be different than those in the 1-year forecast. In the included table, only the relevant stocks have been included. The boxes are arranged according to their respective signal and predictability values (see below for detailed definitions). A green box represents a positive forecast, suggesting a long position, while a red represents a negative forecast, suggesting a short position.

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.