I Know First Research Blog | I Know First Reviews Weekly Algorithmic Performance: November 27th, 2016 | TalkMarkets
Daily Market Forecast Based On a Predictive Algorithm
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 ...more

I Know First Reviews Weekly Algorithmic Performance: November 27th, 2016

Date: Wednesday, November 30, 2016 5:03 AM EDT

I Know First Reviews

On November 27th, 2016, our weekly newsletter was sent out to all our I Know First subscribers, which can be found here. Below, find the I Know First Reviews, highlighting the algorithm's performance for this past week.

I Know First Reviews

I Know First sends a weekly newsletter every Sunday to all the I Know First subscribers, highlighting the past week’s performance in all the covered financial markets, i.e. equity positions, currencies, and commodities. Additionally, the weekly newsletter includes analysis and updated news reports regarding prominent firms such as well Apple, Yahoo, Baidu, and more. The I Know First algorithm maintains a bullish stance of the firms analyzed, and our subscribers are able to utilize these tools for their investment strategies. The in-depth analysis is provided by the I Know First financial analysts, who are often times as well top rated authors for prominent financial sites such as Seeking Alpha.

In general, the algorithm is made up of a system that is a predictive stock forecast algorithm based on Artificial Intelligence and Machine Learning with elements of Artificial Neural Networks and Genetic Algorithms incorporated in it. This means the algorithm is able to create, modify, and delete relationships between different financial assets. Based on the relationships and the latest market data, the algorithm calculates its forecasts. Since the algorithm learns from its previous forecasts and is continuously adapting the relationships, it adapts quickly to changing market situations.

For a more detailed explanation, regarding the algorithm, click here.

As highlighted in the newsletter, our subscribers had seen superb returns, whether long-term or short-term. Our investors are able to tackle the market head on with all its recent uncertainties, and achieve premiums well over those offered by institutional and classic fund managers. For example, our state of the art algorithm tracks Top 20 Stocks, on November 23rd, 2016, a 7 day long forecast was published. Within the span of 7 Days, Federal Home Loan Mortgage Corporation, or Freddie Mac (FMCC) gave returns of 60.53%. The algorithm had predicted 16 out 20 stocks correctly in a bullish manner, for the 7 day time horizon.

Every week the top performing financial instruments are highlighted, as shown below from this past week’s newsletter.

1. Two Week Forecasts Yield Almost 52% Return
Over the past week, I Know First's self-learning algorithm had published many excellent returns for our clients. The top forecasts came from our 14 days forecast with this Small Caps Stocks forecast having the best overall returns. The forecast had an overall average return of almost 17%, returns reaching almost 52% in 14 days. Additionally, this Fundamentals Low Price/Book Ratio Stocks forecast had as well superb returns reaching over 51%, with a market premium above the S&P 500 Index of 21.30%. This Top 10 Stocks forecast, representing the the algorithm's top equity choices, had an almost 12% market premium, and returns reaching almost 35%. Furthermore, I Know First's big data driven algorithm had achieved over a 34% return with this 52 Weeks High Stocks forecast.

2. Investors Reach Almost 18% Return In 3 Days 
I Know First's algorithm had successfully achieved high short-term returns during the past week. This 3 days 52 Weeks High Stocks forecast had reached a 17.76% return in 3 days, and an overall average of almost 7% at the same time. Additionally, in 3 days, Investors were able to achieve returns of 15.72% and an alpha of almost 5% found in this Basic Industry Stocks forecast. From our Automotive Industry Stocks, this 3 days forecast I Know First's self-learning algorithm had reached returns of over 7% and an overall average of 4.51% in 3 days.

3. 7 Day Forecast Achieve Over 1500% ROE
The top performing 7 day forecast came from this Fundamental's Low P/E Ratio Stocks forecast with an overall forecast average of 180.14% and bullish positions reaching 1500.88% returns. Additionally, subscribers had investment opportunity sets from the algorithm's top choices reaching a 60.53% return from this 7 day Top 10 Stocks forecast. I Know First's algorithm had as well offered exposure in basic industries, and successfully forecast superb returns of over 16% in 7 days with this Basic Industries Stocks forecast, which had reached a 5.65% market premium as well. Additionally, investors seeking exposure in the technology sector had achieved returns reaching almost 15%, with this Tech Stocks forecast.

4. 1 Month Returns Yield Almost 65% 
This Stocks Under 10 Dollars forecast, forecasted by I Know First's algorithm, had achieved returns at 64.92% and almost a 15% market premium in 30 days. Investors seeking exposure in bond yields, ranging from OECD countries to EM countries had reached an overall average of 28.36%, and this government bond reaching almost 46% return in 1 month all from this Interest Rates forecast. Value investors seeking stocks fulfilling fundamental criteria had received returns reaching almost 35% with this Fundamentals Low P/Book Ratio Stocks forecast. Additionally, I Know First's algorithm had forecasted commodity price rebounds as represented by this Basic Industry Stocks forecast, which had returns up to 48.25% and an overall average of over 19%.

5. Returns More Than Quadrupling In 90 Days
In 90 days, I Know First's self-learning algorithm had achieved returns of 248.07% with this EM Russian Stocks forecast. The forecast as well had an overall average of 31.05% and an alpha of over 27%, benchmarked against the S&P 500 Index. Additionally, investors exposed to the energy industry, such as O&G firms, had reached returns over 89% with this Energy Stocks forecast. This Energy Stocks forecast as well had superb returns in 90 days, achieving an overall average of almost 17% and a market premium over 16%.

6. ROE Reaches Almost 310% In 1 Year
This Dividend Stocks forecast had successfully reached an overall average of 38.19% and had returns up to 309.22%, that had not included dividend payouts to investors throughout the year. Additionally, I Know First's machine learning algorithm had forecasted the returns of options contracts as well, and excellent returns in this Options forecast that more than tripled returns with these call options. The options forecast had an overall average of 36.72%, as well as a market premium of over 31% in 1 year.

7. Swing Trading Strategies Reach Almost 70%
I Know First's short-term trading strategies had reached a 62.76% alpha above the S&P 500 Index's return of 6.84% from January 2016 till the end of October 2016. Read the full report for a more detailed analysis with charts and graphs, depicting a high reward to risk payoff with low Betas and high Sharpe Ratios.

Article Summaries

  1. Over the course of the past few month's I Know First's AI-based algorithm and financial analysts had both forecasted a bullish outlook on United States Steel (X) and its superb rebound following a macro environment improvement on steel and Trump's presidential nomination. On July 13th, 2016, an I Know First analyst wrote about the United States Steel's operational efficiency and an improvement in the market conditions. Additionally, on November 16th, 2016, an analyst had reinforced the short to long-term bullish outlook on X. In accordance with I Know First's algorithm the X's shares have rise 57% and 16.47%, respectively.
  2. While many investors had thought Advanced Micro Devices had peaked around October, leaving little room for an upside, I Know First's self-learning algorithm had forecasted a bullish position on AMD along with a financial analyst. On October 17th, 2016, an I Know First analyst had wrote about how AMD's ability to continue to reward investors through its innovation in virtual reality, new Zen architecture product, and new partnerships. In accordance with the algorithm's prediction, AMD shares returned 20.30% since the bullish forecast.
  3. A couple weeks ago, I Know First's machine learning algorithm and with an I Know First analyst had forecasted a short-term and mid-term bullish position on Disney (DIS). On November 8th, 2016, an I Know First analyst had written about the market's mispricing of DIS shares, since 2016 had proved to be great for Disney's top line. In accordance with I Know First's algorithm, DIS's stock has risen almost 7% to date. Thus providing a short-term upside to investors.
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