Stay Ahead Of The Curve: AI Weekly Stock Market Prediction: Are Markets As Chaotic As We Think? The rise of machine learning and the omnipresent AIs poses quite a variety of questions for humanity as it enters the era when everything around has the word “smart” in its name. How do we make sure that smart machines do not leave humans out of jobs and, thus, means to sustain themselves? How do we maintain people’s privacy in a time when data, the AI fuel, is such a major business enabler? Will we ever get to the point where advanced mathematics can approximate the human cognition, with all of its virtues and drawbacks, and how do we remain human in the age of singularity?



These are all good and valid questions to mull over, but there are also dozens and dozens of more pragmatic things to consider. One of them is the way the AI technology is transforming the financial sector, and here, one of the most difficult, yet most alluring challenges for machine learning is this: can AI be used for stock market prediction with an efficiency that would leave the conventional investment strategies behind? Can AIs beat the stock market?



Read more. Stock Market Predictions: Where In The Feedback Loop Is Your Portfolio? Some traders follow the trend, and some go against it. I Know First approach is simply try an assess where the next opportunity is, either long or short, and provide stock market predictions. If this means to do what everyone else does, than why not. If it means going against when everyone else does, this is also fine. The tricky part is determining where this opportunities are.



Finding the patterns alone can often be difficult. Between the random events, investor bias, and periods of negative feedback it is often hard to recognize the trend or make sense of the picture. At I Know First we utilize advanced self-learning algorithms to try and separate the predictable from the unpredictable.



Read more. Stock Market Prediction: AI And Chaos Theory There have been many attempts to model the inner workings that make markets tick the way they do, starting from those as fundamental as the Smithsonian unseen hand correcting all the wrongs. However, when it comes to things less abstract and academic, one of the main questions on everybody’s minds is whether market, and, more specifically, stock market predictions are a possible or not.



Chaos theory can be the answer here, as it is pretty good at dealing with complex dynamic systems in which a minor change in one of the features can produce a massive fallout. In other words, they can be thrown off balance by a relatively small event that may even look unrelated at first sight. Stock markets are easy to imagine as such systems: most price fluctuations result from the decisions made by the investors, sometimes fully rational and calculated, and sometimes taken in the heat of the moment, when chaos strikes and emotions run high.



Read more. Keep Calm & Trust Your Data: AI And Stock Market Irrationality The world as we know it, in all its orderly glory, is emerging from the state of complete and utter entropy. Rationalizing is the keyword here: it does not take a stretch of the imagination to view this post-chaos world as being the rational one, the one that makes sense, while its pre-chaos version would be absolutely irrational.



In this article, we will take the freedom to view rational investment behavior as the one that seeks to obtain the highest level of returns possible for the individual risk tolerance level based on all information available to the investor.



Read more. Machine Learning Applications: The Machine Learning Revolution is Ready to Disrupt Asset Management Machine learning systems excel at observing patterns and making predictions. Insurance firm and investment banks have recognized this technology’s resourcefulness. They are applying machine learning capabilities to streamline processes such as claims processing, fraud prevention, and contract validation. Other industries in financial services are receptive to utilizing AI and machine learning technology. However, machine learning-based systems have yet to gain traction in the asset management industry.



Investors may think that a stock’s trend seems random at a glance, but that is a common fallacy about markets being unpredictable. Markets are chaotic systems with complex dynamics, but they behavior still contains a systemic component. This makes it possible for AI and self-learning algorithms, together with insights of chaos theory, to observe patterns from big data of past stock market activities to forecast future trends in the stock market to a certain extent. Read more.

Want to learn more? Algorithmic Performance: Stock Market Predictions: I Know First S&P 500 & Nasdaq Evaluation Report – Accuracy Up To 82%

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MarketWatch Featured Article: The Next Frontier of Artificial Intelligence Predictability in Financial Markets - Yaron Golgher CEO & Co-Founder of I Know First