Since 1987, Stock Investors know they are exposed not only to the normal market risk, but also to the risk of extreme variation of asset prices. Extreme risks are not managed by the normal financial practice and there are not any specific instruments to hedge for them. We approached the problem by using a sentiment indicator to decide when it should be better to stay aside to the market. This approach produced good results, particularly using neural models integrating real and monetary variables with the Bull Bear Spread.
Eolo 3 is a neural network which provides forecasts of the US Stock Exchange on the basis of a couple of confidence indicators. Until now, the growth of Wall Street has been well related with the American people confidence, even if an inflection point in the next three months is possible.
FOREX: Updated forecast based on an artificial neural network: the exchange rate euro / dollar is expected to fall. Target Rate at 15 weeks 1.27
NILO II è un indicatore congiunturale composito di 10 indici elementari. Funziona sull’economia italiana
The NILO neural network forecast that the recovery is far from touching the Italian economy. Moreover, in almost all the OECD economies the recovery of the manufacturing sector is lagging behind the GDP growth, largely inflated by generalized quantitative easing policies.
NILO is a NEW Italian business cycle leading indicator based on a neural network. It is made by 15 independent variables and points to a slump of about 1,5% of the italian GDP in the first quarter 2012
Seven rules to build a successful strategy to invest in the Stock Market