Stock Market Forecast: I Know First provides investment solutions for both individual and institutional investors, utilizing an advanced AI self-learning algorithm to gain a competitive advantage. We offer a personalized approach to our institutional clients, assisting them in their investment process based on their specific needs and preferences. For more details about I Know First solutions for institutional investors, please visit our website.

Strategies by Predictability

The following trading strategies were developed using I Know First’s AI Algorithm daily forecasts from January 29^th, 2020, to March 24^th, 2023, with a focus on S&P 500 stocks selected based on the predictability filter. The results of these strategies serve as examples of the trading solutions that I Know First could offer to institutional clients.

Strategy 1

Strategy 1 is an equal-weighted portfolio with monthly rebalancing by the top 50 most predictable stocks.

The strategy provides a positive return of 264.19% which exceeded the S&P 500 return by 244.08%.

Below we can notice the strategy behavior for each year.

Overall, we can notice that the IKF strategy beats the S&P500 in a systematic way for 2020-2023.

Strategy 2

Strategy 2 is a tiered portfolio with monthly rebalancing by the top 50 most predictable stocks. This strategy utilizes the same stock picks as the equally weighted portfolio but assigns weights to each stock based on the forececast’s signals.

The strategy provides a positive return of 287.95% which exceeded the S&P 500 return by 267.84%.

Below we can notice the strategy behavior for each year.

Overall, we can notice that the IKF strategy beats the S&P500 in a systematic way for 2020-2023.

Strategies for Various Predictability Ranges

Strategy 1 is the equal-weighted portfolio with monthly rebalancing. The strategy provides a positive return for various portfolios based on investor risk preferences. The riskiest portfolio is the Top 50, which demonstrates an overall return of 264.19% and a daily volatility of 1.75%. Conversely, the portfolio with predictability stocks ranging from 450 to 500 represents the least risky option, with an overall return of 4.80% and daily volatility of 0.60%.

Strategy 2 is the monthly rebalancing tiered portfolio. This strategy utilizes the same stock picks as the equally weighted portfolio but assigns weights to each stock based on signals. The strategy generates positive returns for different portfolios, taking into account investor risk preferences. The riskiest portfolio is the Top 50, which achieves an overall return of 287.95% and a daily volatility of 1.77%. On the other hand, the portfolio consisting of predictability stocks ranging from 400 to 450 represents the least risky option, with an overall return of 10.03% and daily volatility of 0.62%.

I Know First Algorithm – Seeking the Key &  Generating Stock Market Forecast

The I Know First predictive algorithm is a successful attempt to discover the rules of the market that enable us to make accurate stock market forecasts. Taking advantage of artificial intelligence and machine learning and using insights of chaos theory and self-similarity (the fractals), the algorithmic system is able to predict the behavior of over 13,500 markets. The key principle of the algorithm lies in the fact that a stock’s price is a function of many factors interacting non-linearly. Therefore, it is advantageous to use elements of artificial neural networks and genetic algorithms. How does it work? At first, an analysis of inputs is performed, ranking them according to their significance in predicting the target stock price. Then multiple models are created and tested utilizing 15 years of historical data. Only the best-performing models are kept while the rest are rejected. Models are refined every day, as new data becomes available. As the algorithm is purely empirical and self-learning, there is no human bias in the models and the market forecast system adapts to the new reality every day while still following general historical rules.

Stock Market Forecast: Conclusion

I Know First offers investment solutions for institutional investors, leveraging our advanced self-learning algorithm to gain a competitive advantage. We provide a personalized approach for our institutional clients, enhancing their investment process according to their specific needs and preferences. In this context, we have evaluated the performance of various trading strategies based on the predictability filter during the period from January 29th, 2020, to March 24th, 2023.

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Please note-for trading decisions use the most recent forecast.