Artificial Neural Networks forms the backbone of all the tools and methods used at Tradespoon. Using neural networks, we study how stocks have behaved in the past and try to predict how they will behave in the future. For example, we learn the behavior of stocks before and after earnings, and try to predict their behavior going into the next reporting cycles. Apart from knowing what the key prices will be on a certain date, we also need to isolate the trend and find the Support and Resistance levels to be a more successful trader.
Tradespoon uses data science to find undervalued stocks and rank them based on probability of movement. Our portfolio building tools enable you to target the trade ideas that match specific, defined investment preferences. We follow 8,000 stocks that trades on NASDAQ, New York Stock Exchange and AMEX, study their price actions before and after Earnings, and study the Earnings data before and after. Using this we predict which stocks will have the highest predictability factor in terms of forecasting and key Support and Resistance levels in the future.
With Tradespoon’s tools, you can also access the full ranking of the most over-performing and under-performing stocks. Our artificial neural networks are similar to a brain- they self-learn and apply the best-performing quant models and methods after testing them against historical data. It uses advanced statistical methods and analyses non-periodic stock price waves to determine which price ‘blips’ indicate whipsaws that might produce trading losses.
Traditionally, you look at the historical price charts and patterns, find the key chart patterns or Support and Resistance levels, and you try to extrapolate what stocks will do in the future. But we believe that the algorithms such as MATLAB® can do a better job of analyzing and predicting, especially if you take into account the scale of the task and that some stocks are more predictable than the others.
Our software mathematically compares existing stock trading patterns with previous patterns and analyzes these interconnections. By using insights generated from our innovative neural network based technology, you can make money in both Bull and Bear markets. It can make predictions for a day or up to the next 75 days. It can also be used to determine Trend and Resistance levels when trading options.