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For an in-depth understanding of Webmind Market Predictor, read this related document.
 

Webmind Market Prediction Technology

The power of Webmind customized to interpret -- and predict - market movements.

Markets are made by, and respond to, the thoughts and feelings of human beings, including commentators and analysts as well as buyers and sellers. Traditional "black box" and other computerized market analysis tools can assess technical indicators, but cannot easily integrate human sentiments without human aid.

Using Webmind's text-analysis capability, along with unique and advanced statistical-pattern-recognition-based numerical forecasting techniques, MarketPredictor extracts valuable information from market-related news and opinion texts, adding real-world
relevance and dimensionality to the traditional business metrics used in market modeling and forecasting. The result is a prediction tool that recognizes and interprets the significance of events, facts and opinions as well as numbers, substantially (and provably) increasing the accuracy of its judgments, and minimizing investment risk.

Instead of applying one-size-fits-all algorithms and data sets, MarketPredictor examines the reams of relevant market data that are generated every day -- from news bulletins to analyst ratings - and determines their relevance, trustworthiness, and applicability to its
analysis of specific market activity. In other words, MarketPredictor understands 100-day moving averages and peak/trough analysis, but it can also understand the impact of a bad S&P rating, or the effect of the price of wheat on a baked-goods manufacturer's stock.

Having derived these market factors, MarketPredictor can integrate them with its numerical prediction techniques to create prediction rules that are of superior relevance to traditional technical indicators. And because MarketPredictor has inherited WebMind's learning capabilities, each wave of market data strengthens its understanding and ability to predict.

While beta tests are being conducted by analysts now, MarketPredictor's prototype has performed admirably in third-party tests, predicting movements of the Dow Jones Industrial Average, the S&P 500, and Eurodollar futures with superior accuracy to non-text-based analysis.

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