Volatility Prediction Based on Algorithmic Trading: Returns up to 11.04% in 1 Month

February 22, 2022

Volatility Prediction

This Volatility prediction 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: 1 Month (1/21/22 – 2/21/22)
I Know First Average: 5.58%
Volatility Prediction
Volatility Prediction chart

In this 1 Month forecast for the Volatility Forecast Package, there were many high performing trades and the algorithm correctly predicted 6 out of 7 trades. The top-performing prediction in this forecast was ^SRVIX, which registered a return of 11.04%. ^JNIV and ^VXD also performed well for this time horizon with returns of 10.35% and 8.71%, respectively. The package’s overall average return was 5.58%, providing investors with a 8.57% premium over the S&P 500’s return of -2.99% during the same period.

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 7 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.

Volatility Forecast