Money Making in Stock Market: 70% success rate seen on AI platform using alternative data

Making money in the stock market is not easy and involves a lot of risk-taking capabilities. There is no guarantee to earn profits in every trade or from every investment. Investment strategies, therefore, keep evolving to limit losses and maximize gains.

Alternative data have developed into a potent tool in stock trading over the past few years, assisting investors in learning more about businesses, staying on top of trends, and selecting stocks with knowledge. They are known to outperform the market by using these non-traditional data sources, including as job posts, social media following, and employee satisfaction.

According to data from AltIndex.com, using alternative data has enabled this AI platform to predict the stock market with a high 70% success rate. Opera (OPRA) and Remitly (RELY) were the top-performing stock picks with 139% and 91% price jump in six months.

Although essential, traditional financial analysis may not always provide a complete picture of a company’s performance and potential. That’s where AI and alternative data come in handy.

AltIndex claims that it’s algorithm analyzes millions of data bits across the internet, helping investors to make more informed decisions. The algorithm’s performance in February proves the enormous potential of combining AI and alternative data analysis in stock picking.

According to AltIndex, statistics show almost 70% of all stock picks in February resulted in gains, contributing to an overall positive return of 27%. This was a strong follow-up to January, which saw 85% successful stock picks.

Opera (OPRA) and Remitly (RELY) were the top-performing stocks from the AltIndex February recommendation. Six months ago, the AltIndex algorithm marked Opera (OPRA) as a good buy, based on a spike in business outlook, app downloads, and several other factors. Since then, the company’s stock price surged by a massive 139%.

Remitly (RELY) was another successful buy recommendation, made on several positive indicators, including job posts, employee satisfaction, mobile app downloads, and a month-over-month spike in YouTube subscribers. Since the algorithm recommended buying the stock in February, its price jumped by more than 91%.

The sell recommendation for Bed, Bath & Beyond (BBBY) was also spot on. Six months ago, the company’s job posts took a nosedive, and sentiment across popular stock forums plummeted, turning it into a sell recommendation. Since then, the company has gone out of business, and its stock has been delisted from the NASDAQ exchange.

With artificial intelligence and alternative data, stock trading has the potential to become much easier and faster. That is it is believed that more and more traders base their investments on AI stock picks.

According to an eToro survey conducted in June among 1,000 US retail traders, most are ready to jump headfirst into AI portfolio management. Statistics show around 40% of them, or two in five respondents, are open to using or are already using artificial intelligence to change investments in their portfolio. Younger investors, aged between 18 and 44, are even more open to AI stock picks, with 71% using AI to grow their assets.

The survey also showed one-third of respondents believed AI technology picks better investments than a traditional fund manager, while almost two-thirds would allow artificial intelligence to alter and execute trades for them.