A Genetic Algorithm Optimized Decision Tree- SVM based Stock Market Trend Prediction System
Journal Title: International Journal on Computer Science and Engineering - Year 2010, Vol 2, Issue 9
Abstract
Prediction of stock market trends has been an area of great interest both to researchers attempting to uncover the information hidden in the stock market data and for those who wish to profit by trading stocks. The extremely nonlinear nature of the stock market data makes it very difficult to design a ystem that can predict the future direction of the stock market with sufficient accuracy. This work presents a data mining based stock market trend rediction system, which produces highly accurate stock market forecasts. The proposed system is a genetic algorithm optimized decision tree-support vector machine (SVM) hybrid, which can predict one-day-ahead rends in stock markets. The uniqueness of the proposed system lies in the use of the hybrid system which can adapt itself to the changing market conditions and in the fact that while most of the attempts at stock market trend prediction have approached it as a regression problem, present study converts the trend prediction task into a classification problem, thus improving the prediction accuracy significantly. erformance of the proposed hybrid system is validated on the historical time series data from the Bombay stock exchange sensitive index (BSE-Sensex). The system performance is then compared to that of an artificial neural network (ANN) based system and a naïve Bayes based system. It is found that the trend prediction accuracy is highest for the hybrid system and the genetic algorithm optimized decision tree- SVM hybrid system outperforms both the artificial neural network and the naïve bayes based trend prediction systems.
Authors and Affiliations
Binoy B. Nair , V. P Mohandas , N. R. Sakthivel
Keywords
Related Articles
- EP ID EP124261
- DOI -
- Views 72
- Downloads 0
An Extensive Study on the Future of Modeling in Software Development
In recent years, software modeling realized much attention in the field of software research and development due to demonstrating the capability of decreases time and cost of software development and also improves overal...
FEATURE BASED IMAGE OPTIMIZATION TECHIQUE
The motivation behind the production of high resolution images is to increase the quality and the visual presentation of a digital image. The erstwhile analogue images captured by the silver Bromide film was having infin...
A Brief Overview Of Software Testing Metrics
Metrics are gaining importance and acceptance in corporate sectors as organizations grow, mature and strive to improve enterprise qualities. Measurement of a test process is a required competence for an effective softwar...
Recent Advances in SRE Research
The importance and the real potential of the Requirements ngineering is now being well recognized. A series of reversed as well as assorted researches are underway particularly on ‘ways to incorporate security right fro...
PRODUCTIVE CO PROCESSOR DESIGN BASED ON PROGRAM BENCHMARK
The objective of this paper is to design a methodology where many co-processors are accessed by the processor in array mode. By using co processor, the work on the multi core processor gets reduced by accessing it in arr...