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Algo-Trading for the Individual
Investor
Algo-Trading’s place in a Sound
Investment Strategy
Algo Trading for the Individual
Investor
• Raw Speculation has always been anyone’s game
• Traditional tools and fundament...
Quantitative Trading
• The lesser known method of utilizing algorithm’s for trading
– The popular version is HFT, which do...
Quantitative Trading
Artificial Intelligence
Machine
Learning
Neural
Networks
Genetic
Algorithm
www.iknowfirst.com
Machine Learning
• Machine Learning is a subunit of computer
science that focuses on Pattern Recognition
– Specific for fo...
Neural Networks
1. Neural Networks
are inspired by a living
brain!
2. Each connection is
assigned a weight that
works with...
Genetic Algorithms
• The glue that holds the theory behind the
algorithm together
– A search function which eliminates bad...
Artificial Intelligence
• You can rely on good artificial intelligence
– Hospitals, Air control centers, Toy Companies, an...
Quantitative Trading
• Quantitative Trading gives off the best of both
worlds:
– Could be made fully automatic
– Could be ...
Quantitative Trading
• Every good portfolio stacks investments up with
counter-investments with curb losses (and gains)
Tr...
Algo-Trading Protection
Algo-Trading
Human
Factors
Psychological
Pressures
Noise
(news) Miscalculations
Objective
Valuatio...
Algo-Trading Protection
• Our global world: Markets become more and more
integrated with each passing technological
advanc...
Algo-Trading with I Know First
• The
benefit of algo-
trading with
I Know First is
that our
algorithm is a
proven success
...
Full Trade Report
2014
Summary Report for 2014
www.iknowfirst.com
Algo-Trading with I Know First
Check out our website
IKnowFirst.com
Market Forecasts and updates Daily
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Algo-Trading for the Individual Investor

I Know First is a financial technology company that provides daily investment forecast based on an advanced self-learning algorithm. The system is a predictive stock forecast algorithm that is based on Artificial Intelligence (AI), Machine Learning (ML), and incorporating elements of Artificial Neural Networks and Genetic Algorithms.

That means: The Algorithm creates relationships between the different financial assets and is able to modify, delete and create new relationships. Based on the relationships and the latest market data, the algorithm calculates the forecasts. Since the Algorithm learns from its previous forcasts and is continously adapting the relationships, it is able to adapt quickly to changing market situations.

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Algo-Trading for the Individual Investor

  1. 1. Algo-Trading for the Individual Investor Algo-Trading’s place in a Sound Investment Strategy
  2. 2. Algo Trading for the Individual Investor • Raw Speculation has always been anyone’s game • Traditional tools and fundamental analysis is not a great answer to compete with firms that use High Frequency Trading (HFT) • Most traditional wisdom and tools are hard to use for a singular market like a stock Humans just can’t beat High Frequency Trading without an aid of their own on a day to day basis!
  3. 3. Quantitative Trading • The lesser known method of utilizing algorithm’s for trading – The popular version is HFT, which dominated markets but is marred in controversy and growing less effective • Huge technological costs • Curbed usage by law in E.U and Canada • Quantitative trading uses its own set of mathematical computer algorithms that: – Analyze the structure of the market • Identifies Trends • Establishes Patterns
  4. 4. Quantitative Trading Artificial Intelligence Machine Learning Neural Networks Genetic Algorithm www.iknowfirst.com
  5. 5. Machine Learning • Machine Learning is a subunit of computer science that focuses on Pattern Recognition – Specific for forecasts! • The hallmark is that it is Self Learning – The Algorithm adds code that are consistent with patterns found – The Algorithm dumps the codes that are unsuccessful www.iknowfirst.com
  6. 6. Neural Networks 1. Neural Networks are inspired by a living brain! 2. Each connection is assigned a weight that works with the input to arrive at an output. The Output is a function of the inputs and connections. 3. As a member of the artificial intelligence community, Neural Networks update their connections (the assigned weights within) according to what works and what doesn’t work. Historical Data 4. Sounds a lot like Optimization! The algorithm, after all, is one giant function.
  7. 7. Genetic Algorithms • The glue that holds the theory behind the algorithm together – A search function which eliminates bad solutions and pieces together new ones out of the ashes Genetic Operators Crossover Mutation • Gives the algorithm the ability to alter the data being crossed over. It has to be controlled, because it includes an element of randomness. • Combines the parent data together and builds it into a recognizably similar solution www.iknowfirst.com
  8. 8. Artificial Intelligence • You can rely on good artificial intelligence – Hospitals, Air control centers, Toy Companies, and of course Investment firms do all the time • Artificial Intelligence, almost by definition, is on the up-and-up in the global market • The Stock Market it the best place to apply artificial intelligence because it receives feedback a million times a day! • I Know First’s algorithm is operational since and already has of learning under its belt! www.iknowfirst.com
  9. 9. Quantitative Trading • Quantitative Trading gives off the best of both worlds: – Could be made fully automatic – Could be a forecast with suggested put and call orders • Traders watch the market and place trades manually • The Investors decide what to do with the forecast! www.iknowfirst.com
  10. 10. Quantitative Trading • Every good portfolio stacks investments up with counter-investments with curb losses (and gains) Trade in USD Also trade in GBP Hold interest bearing assets Hold assets with “static” value Invest in Bank Stocks Invest in stocks in a different industry Look for assets that would perform well in a sudden downturn Look for assets that would do well in a sudden expansion Hold stocks on the TSX Hold stocks in different global markets Pick stocks based on emotion and gut- feelings Pick socks free of emotion and gut- feelings- Algo-Trading! www.iknowfirst.com
  11. 11. Algo-Trading Protection Algo-Trading Human Factors Psychological Pressures Noise (news) Miscalculations Objective Valuation of a Stock Quantitative forecasting the future stock trend www.iknowfirst.com
  12. 12. Algo-Trading Protection • Our global world: Markets become more and more integrated with each passing technological advancement • Stock Markets have always been interconnected – Movements in one market affect all markets somehow • Political events in Iran and Russia affect oil prices and the E.U, which have a profound effect on the Canadian economy which will harm the U.S economy… • Algorithms quantify these effects and build them into predictions, much more extensively than a human can
  13. 13. Algo-Trading with I Know First • The benefit of algo- trading with I Know First is that our algorithm is a proven success The overall I Know First return in the one year period from July 1st, 2014 to June 30th, 2015 yielded and overall return of 83% while the S&P500 rose by 5.2% during the same period.
  14. 14. Full Trade Report 2014 Summary Report for 2014 www.iknowfirst.com
  15. 15. Algo-Trading with I Know First Check out our website IKnowFirst.com Market Forecasts and updates Daily

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