Journalists from Israel's News 13 TV visited the I Know First office this week to assess the algorithm's performance. The idea for the story was quite simple: the journalists would get a short brief about I Know First and its predictive stock forecast AI and then try to build two portfolios using the AI predictions. More specifically, the Top 20 stock picks package would be used for the experiment. The first portfolio would be built for passive investment, which would just stay untouched throughout the review period, and the other – for active investment, which would see buy and sell orders placed on a daily basis. If the active portfolio beats the passive one by 100% or more in terms of returns, the test would be passed.



Would the company live up to its promise of delivering accurate stock market forecasts, relying on an advanced AI?



Spoiler alert: it did. Read more. Drying Out Dark Pools and Forecasting Trading Volume



Trading volume of a stock is the quantity of shares or contracts exchanged over a given time period, typically one day. While this number may not seem very significant, it can show a stock’s momentum, confirm a current trend, and can help to indicate whether an investor should buy or sell a stock.



If an investor sees that trading volume has been increasing progressively over the past year and is now at the highest volume the company has experienced, this shows the stock is continuing on an upwards trend. On the other hand, low activity can also indicate low interest in the stock and may be a signal to sell that security. If there is no relationship between trading volume and stock price, this could be a sign of weakness in the stock a potential reversal of current momentum. Alternatively, one can also compare the daily trading volume with the average trading volume to come to a conclusion. Institutional clients can now access analysis about trading volume for dark pools. Read more about it in the CEO letter! Read more. Algorithmic Trading: Wisdom Of The Crowd vs. Algorithmic Trading In his book “The Wisdom of Crowds,” Surowiecki provides many promising and commonplace examples of a wise—and accurate—crowd. For example, at a town fair where visitors could guess the weight of an ox, the average of the crowd’s estimates often measured up to a reliable indicator of the ox’s true weight. At times, the “wisdom of the crowd” can fuel processes now crucial to our daily routines, such as Google searches. While Google displays search results in order of page popularity and crowd engagement, this method often ends up correctly arranging pages in order of relevancy to the query. Evidence shows that when it comes to financial markets, the crowd is not so wise—and thus, the advent of a soaring alternative: algorithmic trade.



Read more. Top 3 Stock Valuation Methods Plus the Algorithmic Valuation Tool The share prices for assets vary not only on a day-to-day basis but on a minute-to-minute and even second-to-second basis. There are many reasons for these fluctuations in prices, but it essentially comes down to the inability to discover the true value of any asset. Prices for assets constantly overshoot or undershoot an imaginary point of equilibrium called the “fair price”.



As share prices fluctuate daily, investors and analysts do what is called stock valuation in order to determine the essential value of particular stock or asset. There are innumerable valuation techniques that can be used for this determination as each stock is unique and each industry has unique properties that need to be taken into account. Learn more about which tool is most approrpriate for each situation.



Read more.

MarketWatch Press Release: AI-Driven Stock Predictions: I Know First To Democratize AI For All Artificial intelligence is being widely used by pig players on the investment scene.While the technology has a lot to offer, advanced models trained by top investment banks are likely to stay out of the reach of broader audience. It is up to startups like I Know First to democratize AI.



The landscape of investment is a diverse one, with all sorts of actors in play from individual investors to pension funds and other institutional investors. What unites them, among other things, is the apparent appetite for the AI technology, which has recently been shaking up the financial sector. But when it comes to investment specifically, predictive AI algorithms trained by investment banks and other big players often end up behind the shut doors, inaccessible for those who do not possess similar resources or know-how. Read more.



Want to learn more? MarketWatch Press Release: Stock Market Forecast: AI-Based Algorithm Shows Accuracy Up To 97% In S&P 500 and Nasdaq Predictions

Evaluation Report for Short-Term Currencies – July

MarketWatch Press Release: Stock Market Forecast: AI Algorithm Shows Accuracy Up To 95% On Predicting Facebook Price Movements