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How does Wallet Investor work?
Is Wallet Investor Prediction on stock, Forex, commodities, and cryptocurrency accurate?
Can you really use Wallet Investor to make money investing?
Are there any other better alternatives to Wallet Investor?
After trying out Wallet Investor Premium, let me share with you everything that I found out.
What Is Wallet Investor?
Wallet Investor was launched in 2017 with the goal of providing good quality and free-of-charge technical forecasts for cryptocurrency rates.
As manually creating forecasts is extremely time-consuming and requires great expertise, it decided to create an AI-based solution to generate forecasts.
Slowly, it expanded to provide technical analysis and price forecasts for more than 50,000 stocks, several thousand Forex pairs, more than 10,000 funds, and the most important commodities.
Wallet Investor Stock Ratings
Wallet Investor also provides an overall rating on stocks.
Here are 9 types of ratings:
- A+ (Best)
- E- (Worst)
The rating “C” is a neutral value, with A+ being the best and E- the worst.
Every new coin or stock listed on exchanges starts out with a “C” rating and then moves up or down according to certain technical conditions.
To update ratings, Wallet Investor’s algorithm takes the following data into consideration:
- 7-day price (value) gain or loss
- 30-day price (value) gain or loss
- Price gain or loss since the addition
- Volatility during the measured time interval
- Market Cap analysis
- More metrics are being added (according to its website)
Its algorithm CANNOT take into consideration any fundamental values or properties.
But, stock prices are affected greatly by fundamentals.
So, that’s an obvious weakness in its prediction algorithm.
If you are looking for stock ratings, I would highly recommend that you check out Seeking Alpha’s Quant Ratings.
Wallet Investor’s Best Stocks To Buy
Wallet Investor gives you the top 100 stocks that are expected to rise.
The best stocks in the list have to meet the following criteria:
- The stock is in the market and it is actively traded
- The data for the stock was updated within the last 4 days
- The rating of the stock is at least B+
- The one-year forecast for the stock is predicted to be at least 15 % but less than 100%
Below is the screenshot of what you would see if you click “Best Stocks To Buy”.
As you can see, you will see the following for each stock:
- 7-day Forecast
- 3-month Forecast
- 6-month Forecast
- 1-year Forecast
- 5-year Forecast
- Stock price graph for the past year
Is Wallet Investor Prediction Accurate?
So, is Wallet Investor prediction accurate?
To answer this question, let’s first look at how its prediction algorithm works and then check whether or not its 7-day prediction is really accurate.
Wallet Investor Prediction Algorithm
So, how does Wallet Investor make its price prediction?
Wallet Investor’s Predictions are generated by machine learning algorithms.
“Machine learning is a type of artificial intelligence (AI) that allows software applications to become more accurate in predicting outcomes without being explicitly programmed. The basic premise of machine learning is to build algorithms that can receive input data and use statistical analysis to predict an output value within an acceptable range. “
WalletInvestor’s forecasts for stocks and cryptocurrency are based on changes in the exchange rates, trade volumes, volatilities of the past period, and other important economic aspects.
The accuracy of the prediction depends on the quantity and the quality of the data, so it is difficult to anticipate anything in the case of newer cryptocurrencies and stocks.
It’s constantly developing its algorithm.
And it states on its website that it cannot be held responsible for the accuracy of the data.
Also, it advises users not to use its predictions to make financial decisions and it cannot guarantee any profit.
This is because Wallet Investor acknowledges that the cryptocurrency, stock, commodity, fund, and forex rates are influenced by many factors that it does not take into account.
Wallet Investor’s 7-Day & 1-Year Price Prediction
Now, let’s first look at its 7-Day price prediction of two of its “best buy stocks” on 24th Aug 2022:
- ProShares UltraPro QQQ 3x
- ProShares UltraPro Short QQQ -3x
So, what is ProShares UltraPro Short QQQ (i.e. SQQQ)?
It is a 3x leveraged inverse ETF that tracks the Nasdaq 100.
It seeks to return the exact results of the Nasdaq 100 index times negative three.
What is Proshares UltraPro QQQ (i.e. TQQQ)?
It is a leveraged ETF that tracks the Nasdaq-100 index.
TQQQ is to deliver triple the daily returns of the Nasdaq 100 index.
So, in other words, TQQQ and SQQQ are perfectly negatively correlated.
As you can see below, when SQQQ goes up, TQQQ goes down.
The converse is true as well.
Here’s the one-year prediction for TQQQ and SQQQ.
ProShares UltraPro Short QQQ -3x Price Forecast:
ProShares UltraPro QQQ 3x Price Forecast:
As you can see from the above, the 1-year forecasts for both TQQQ and SQQQ say that they would both go up in the next year.
That just does not make sense.
Next, let’s look at its price prediction for both TQQQ and SQQQ for the next few days.
As you can see, the predicted price range for SQQQ for 1st Sep is $7.273 to $75.108.
That’s a very big range.
The current price of SQQQ is $39.34.
Basically, Wallet Investor Algorithm is predicting that the price falls within -82% and 90% in the next 7 days.
I mean, I could have made a very similar prediction without any algorithm.
Better yet, I am quite confident that I could accurately predict a narrower price range than Wallet Investor.
I think that the price of SQQQ would probably fall between $23.6 and $62.90.
In other words, I am predicting that the price falls within -60% and 60% in the next 7 days.
This is just an educated guess of mine based on the price volatility for the past six months.
I have a strong feeling that both Wallet Investor and I would be right about the price range.
So, is Wallet Investor prediction accurate?
Can you actually use its prediction to make investment decisions?
Personally, I think that you should not use the prediction because the algorithm used is seriously flawed.
There are other better and more helpful stock analysis and research platforms such as:
Wallet Investor Pricing
So, what do you get by subscribing to Wallet Investor?
And how much does it cost?
Here’s what you would get if you get Wallet Investor Premium:
- Access 7 Days Premium Forecasts for over 50,000 financial products
- Have unlimited requests and Premium support
- Get early access to our new features so you can stay ahead of the market
- Access the website without advertisement
- Data Export
The subscription is $19.90/month.
Is Wallet Investor Worth It?
Personally, I think the Wallet Investor prediction algorithm is not reliable.
So, there goes the biggest selling point for Wallet Investor Premium.
Although there are other tools such as cryptocurrency calculators as well as free data on cryptocurrency price and market cap, there are many other places where you can get the same information for free.