Volatility Forecasting Based on Machine Learning: Returns up to 38.84% in 1 Year

Volatility Forecasting

Volatility Forecast: This Volatility forecast is designed for investors and analysts who need predictions of the implied volatility for a basket of put and call options related to a specific index. It includes 8 volatility indices with bullish and bearish signals and indicates the best Volatility Index to trade:

  • Volatility indices for the long position
  • Volatility indices for the short position

Volatility Forecast
Package Name: Volatility Forecast
Recommended Positions: Long
Forecast Length: 1 Year (2/14/21 – 2/14/22)
I Know First Average: 26.69%
Volatility Forecasting
Volatility Forecasting chart

The algorithm correctly predicted 3 out of 3 the suggested trades in the Volatility Forecast Package for this 1 Year forecast. The top-performing prediction in this forecast was ^VXD, which registered a return of 38.84%. Additional high returns came from ^SRVIX and ^GDAX, at 33.65% and 7.57% respectively. The package had an overall average return of 26.69%, providing investors with a 14.83% premium over the S&P 500’s return of 11.86% during the period.

Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First subscribers.

How to interpret this diagram

Algorithmic Stock Forecast: The table on the left is a stock forecast produced by I Know First’s algorithm. Each day, subscribers receive forecasts for six different time horizons. Note that the top 3 stocks in the 1-month forecast may be different than those in the 1-year forecast. In the included table, only the relevant stocks have been included. The boxes are arranged according to their respective signal and predictability values (see below for detailed definitions). A green box represents a positive forecast, suggesting a long position, while a red represents a negative forecast, suggesting a short position.

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.

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