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Simulation of Stock Prediction System using Artificial Neural Networks

Simulation of Stock Prediction System using Artificial Neural Networks
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Author(s): Omisore Olatunji Mumini (University of Lagos, Nigeria), Fayemiwo Michael Adebisi (Oduduwa University Ipetumodu, Nigeria), Ofoegbu Osita Edward (Oduduwa University Ipetumodu, Nigeria)and Adeniyi Shukurat Abidemi (Oduduwa University Ipetumodu, Nigeria)
Copyright: 2020
Pages: 20
Source title: Deep Learning and Neural Networks: Concepts, Methodologies, Tools, and Applications
Source Author(s)/Editor(s): Information Resources Management Association (USA)
DOI: 10.4018/978-1-7998-0414-7.ch029

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Abstract

Stock trading, used to predict the direction of future stock prices, is a dynamic business primarily based on human intuition. This involves analyzing some non-linear fundamental and technical stock variables which are recorded periodically. This study presents the development of an ANN-based prediction model for forecasting closing price in the stock markets. The major steps taken are identification of technical variables used for prediction of stock prices, collection and pre-processing of stock data, and formulation of the ANN-based predictive model. Stock data of periods between 2010 and 2014 were collected from the Nigerian Stock Exchange (NSE) and stored in a database. The data collected were classified into training and test data, where the training data was used to learn non-linear patterns that exist in the dataset; and test data was used to validate the prediction accuracy of the model. Evaluation results obtained from WEKA shows that discrepancies between actual and predicted values are insignificant.

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