Algorithmic Trading - How To Make A Systematic Trading Strategy

By I Know First Research Team of I Know First

Daily Market Forecast Based On a Predictive Algorithm • Jan 31, 2016 at 9:21 AM EST

Learn how to build an algorithm that mitigates risk and maximizes investor returns using signals from I Know First.

Every stock is affected by millions of underlying factors moving its price. For this reason creating one systematic trading strategy for an entire portfolio becomes nearly impossible. Trade decisions factors for one asset might be very different than for another. The entry and exit point rules might be different for two different assets. This makes one model for decision-making nearly impossible.

The I Know First algorithm changes all that. It takes all the assets (stock, currencies, commodities, indexes etc.) and aggregate their millions of decision making elements to create a final “signal”. Because this is an absolute number figure reflecting the adjustment for each and every asset, it can be used to create a unified mathematical model for trading. This model will work optimally for any asset that you trade under it, as long as your input variable is the signal. This video is a guide to help investors build algorithms and maximize their returns using I Know First signals:

Disclosure:

This article originally appeared on I Know First, a financial services firm that utilizes an advanced self-learning algorithm to analyze, model and predict the stock market.

Co-Founder Dr. Lipa Roitman, a scientist, with over 20 years of experience created the market prediction system. The algorithm is based on artificial intelligence, machine learning and incorporates elements of artificial neural networks as well as genetic algorithms to model and predict the flow of money between 2,000 markets from 3-days to a year: stocks, ETF's, world indices, gold, currencies, interest rates, and commodities.

The algorithm outputs a predicted trend as a number, which in turn, is used by traders to identify when to enter and exit the market. While forecasts can be used for intra-day trading, the predictability tends to become stronger over longer time horizons such as the 1-month, 3-month, and 1-year forecasts.

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various market.

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