Stock Market Prediction: I Know First provides investment solutions for both individual and institutional investors, utilizing an advanced AI self-learning algorithm to gain a competitive advantage. We offer a personalized approach to our institutional clients, assisting them in their investment process based on their specific needs and preferences. For more details about I Know First solutions for institutional investors, please visit our website.

Stock Prediction: Long-Short Strategy with SPY Stabilizing

The following trading strategy was developed using I Know First’s AI Algorithm daily forecasts from January 1^st, 2020, to December 31^st, 2023, with a focus on S&P 500 stocks selected based on the signal and predictable filters. This strategy is available to our institutional clients: hedge funds, banks, and investment houses, as a tier 2 service on top of tier 1 (the daily forecast).

The strategy involves constructing a tier-weighted portfolio with monthly rebalancing, achieved through the implementation of the signal filter. Moreover, the strategy controls the majority direction. The term “majority direction” refers to our predictions for stocks, upon which we base our position. This decision is guided by a number of long and short stock forecasts. Therefore, if the count of long stock forecasts surpasses the count of short stock forecasts, the majority direction is to go long and we construct a long portfolio. Conversely, if the count of short stock forecasts is higher, we assume a short portfolio.

In the case of this strategy, if the majority direction is long, we construct a tiered weighted portfolio with 100% in equities. If the majority direction is short, we buy 80% of SPY and 20% keep in cash. If the majoriti direction changes from short to long, we buy 100% SPY until next rebalancing.

The strategy provides a positive return of 184.48% which exceeded the S&P 500 return by 137.47%. Below we can notice the strategy behavior for each year.

Stock Market Prediction: Conclusion

I Know First offers investment solutions for institutional investors, leveraging our advanced self-learning algorithm to gain a competitive advantage. We provide a personalized approach for our institutional clients, enhancing their investment process according to their specific needs and preferences. In this context, we have evaluated the performance of the long-short strategy with SPY stabilizing from January 1^st, 2020, to December 31^st, 2023.

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Please note-for trading decisions use the most recent forecast.