Guides · Easy money, trading and scams: the truth
Can AI predict the stock market?
In short: Only partly. On 5,000 random cases from years never seen, the radar's AIs do not predict the direction of the price one month ahead better than a simple rule. They do, however, predict volatility and the risk of a sharp drop well.
What AI cannot do
Say whether a stock will be higher or lower in a month. The test gives about 56% correct answers, the same as the rule "it always goes up". Prices quickly absorb known information.
What AI does well
Forecast how much a price will move (closer to reality than the simple method about 6 times out of 10), spot the stocks most exposed to a drop of more than 10%, and say slightly better than chance which stocks will beat their index.
Why sites claiming 80% often mislead
They test on data already seen, pick their best period or count wrongly. An honest test must use years the AI never saw.