Machine Learning Models for Financial Applications

What is it about?

In this paper, we will predict the value of the close price for the stock market by using a Long-short term memory (LSTM) neural network and predicting the direction of the stock market by using a neural network (ANN). CCS CONCEPTS• Machine learning • Machine learning approaches • Neural networks Additional Keywords: Stock market prediction, Artificial neural network (ANN), Long short term memory (LSTM)

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Photo by Markus Spiske on Unsplash

Photo by Markus Spiske on Unsplash

Why is it important?

The contribution of the paper is outperforming the accuracy result of predicting a stock market value and its direction than other new published papers that will be listed by comparing the accuracy and R-squared results. There are two proposed solutions which are classifying stock market direction and predicting stock market value. The stock market affects both individuals as investors and countries’ economic growth. For individuals, the real incentive that draws investors towards the stock market is making money, and higher profits will be made by higher accuracy predictions. For countries, the performance of the stock market will have an impact on economic growth. Thus the goal is to maximize the profit and minimize the losses.

Perspectives