1. Using News Models to Predict Stock Prices

Where do I find financial news?
We provide an Analyst Search facility that will take you to several excellent sources of historical and real-time news.

How time consuming is this service?
It takes about 1 minute to analyze each news story. You can follow about 10 stocks with less than an hour a day of reading financial news on the web. You can follow the stocks of our recent models, or you can develop your own. If you are interested in customized coverage, please contact us about our premier services.

How many stories do I need to find price prediction models?
You can find prediction models immediately. Just classify a few weeks of historical news for each stock. Some companies have models using 1 month of news, others take 2-4 months of historical news to determine if a correlation exists between the news and the price movement of the stock.

Which Stocks are good for finding models?
Stocks that have a steady stream of news, 5-20 stories a week or 20-200 stories a month. Heavily covered stocks, like GE, appear to have models as well. But, wait before trying to read all the news about IBM, Microsoft, GE, or Citibank. In many cases, we have the data that you may need. Companies like McDonald's, Ford, and NVIDIA have been found to yield models quickly.

Do I have to play around with parameters ?
The main parameters in the model are the window of time for the traning and testing phases. BUY and SELL signals are produced if the centainty of the prediction model is 90% or higher.

How do I use a model to predict?
After you find a model that has a positive return during the testing phase, read news about the company for the current day and use our Model Prediction facility. If the buy signals outweigh the sell signals, the model suggests going long, and if the sell signals outweigh the buy signals, short the stock.

What if I don't want to read any news?
Contact us about our Investor Plan. We'll send our Top Analysts' trade signals to you via email or sms.

2. Using Theory of Three with Market Indexes

What is the "Theory of Three" approach?
It's a new model that we are working on. The preliminary experiments suggest a positive return significantly better than market returns for the major indexes. Similar to our price prediction model based on news, "Theory of Three" captures the investor behaviour patterns for a stock.

How do I use the "Theory of Three" signal?
FNA will send you in the morning via email or sms, a message containing a counter and price associated with QQQQ, DIA, and SPY. Towards the end of the trading day (around 3:45pm EST), the trading stragegy is as follows: If the stock's number is +2 or higher and the stock's price is greater than the price in the messgae, that is, the stock is up since the previous close, sell the stock short for a day. If the number is -2 or lower and the stock is down from the previous close, buy the stock for a day. No trade, if there's any other signal for the stock. It's your job to decide whether to pull the trigger on the third streak. We're finding experimental results which suggest this appoach has a 65% total return across these 3 stocks over the past 2.5 years.