Stock market prediction based on deep long short term memory neural network

Xiongwen Pang, Yanqiang Zhou, Pan Wang, Weiwei Lin, Victor Chang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

To study the influence of market characteristics on stock prices, traditional neural network algorithm may also fail to predict the stock market precisely, since the initial weight of the random selection problem can be easily prone to incorrect predictions. Based on the idea of word vector in deep learning, we demonstrate the concept of stock vector. The input is no longer a single index or single stock index, but multi-stock high-dimensional historical data. We propose the deep long-short term memory neural network (LSMN) with embedded layer to predict the stock market. In this model, we use the embedded layer to vectorize the data, in a bid to forecast the stock via long-short term memory neural network. The experimental results show that the deep long short term memory neural network with embedded layer is state-of-the-art in developing countries. Specifically, the accuracy of this model is 57.2% for the Shanghai A-shares composite index. Furthermore, this is 52.4% for individual stocks.

Original languageEnglish
Title of host publicationCOMPLEXIS 2018 - Proceedings of the 3rd International Conference on Complexity, Future Information Systems and Risk
EditorsMuthu Ramachandran, Victor Chang, Victor Mendez Munoz
PublisherSciTePress
Pages102-108
Number of pages7
ISBN (Electronic)9789897582974
Publication statusPublished - 20 Mar 2018
Event3rd International Conference on Complexity, Future Information Systems and Risk - Funchal, Madeira, Portugal
Duration: 20 Mar 201821 Mar 2018

Publication series

NameCOMPLEXIS 2018 - Proceedings of the 3rd International Conference on Complexity, Future Information Systems and Risk
Volume2018-March

Conference

Conference3rd International Conference on Complexity, Future Information Systems and Risk
Abbreviated titleCOMPLEXIS 2018
Country/TerritoryPortugal
CityFunchal, Madeira
Period20/03/1821/03/18

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