The Markets Are Still Predictable

Daily Market Forecast Based On a Predictive Algorithm • Dec 31, 2015 at 5:30 PM EST

I Know First founder Dr. Lipa Roitman and CEO Yaron Golgher were featured on i24 news concerning the use of Algorithms in the Financial market. Video length 00:2:14.

The interview is based on Dr. Roitman presentation in which he explains how algorithms are used to predict the financial market.

The I Know First Algorithmic System is based on the realization that a stock value is a function of many factors which interact in a non-linear way and affect the future trajectory of the stock creating waves at prices. Being completely empirical, the I Know First self-learning algorithms analyze the inputs and rank them according to their significance in predicting the target stock price. Then they create multiple models and test them automatically on the historical data.

The robustness of the model is measured by how it performs in different market circumstances. The best predicting models are kept and the rest are rejected. Such refinement has continued daily as the new market data is added to the historical pool.

Disclosure:

I Know First is 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.

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