stock index fx commodity – prediction algorithms
Our goal is to make stock index, fx & commodities prediction algorithms, used at investment banks and hedge funds, available to individuals. For instance, this can be used for Spot trades, Options, CFD’s, index funds, ETF’s & Futures trading.
Stock Index and FX markets are very sensitive to economic data. So we perform mathematical simulation of fundamental data and then use AI (Artificial Intelligence) to produce a prediction path. The prediction is the Fair Value of the stock index, fx or commodity.
Unlike other providers,
- We have a bespoke algorithm for each asset and different model parameters for each future date.
- Past price movement is just one of the inputs to our algorithms, in addition to fundamental data such as Bond yields, Interest rates, Inflation, unemployment rate etc.
Professional traders use similar algorithms to determine the fair value of financial assets. Consequently, they then decide their trades, risk and position in the market. In addition, by looking at backtesting, they determine when the markets and algorithms are functioning efficiently. And therefore how and when to trade and when not to trade.
On the other hand, the current tools available to individuals such as trending and charting are vague and based on finding patterns in historical returns (without looking at the relationship of stock and FX prices to economic data). Hence, this does not represent the randomness and independence of future outcomes to past trends.
the Big Move
Log in Review backtesting results Then look at today’s prediction Pick the predicted path that is closest to the current market values and use that. Then, monitor, tweak, rebalance and adjust/exit open positions. But, if a prediction has not followed the realised path correctly, don’t trade for it’s own sake.
The prediction path and respective realised path is shown in backtesting section for each stock index, commodity and fx pair.
Most importantly, review the graphs daily even when not trading. Don’t miss the big move when the predicted path is tightly following the market.
a sample – Stock Index and FX prediction
A sample page showing results from a previous day that was least disturbed by the day’s market news is shown here. As a result, you will notice a near perfect prediction.
Finally, graphs with algorithm output shown on STOKAI pages, do not constitute financial advice in part or whole. Furthermore, they do not represent view or opinion of the company or any of its directors, shareholders, customers or employees.