Stacked Denoising Autoencoder Based Stock Market Trend Prediction via K-Nearest Neighbour Data Selection

  • Haonan Sun
  • , Wenge Rong*
  • , Jiayi Zhang
  • , Qiubin Liang
  • , Zhang Xiong
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

In financial applications, stock-market trend prediction has long been a popular subject. In this research, we develop a new predictive model to improve the accuracy by enhancing the denoising process which includes a training set selection based on four K-nearest neighbour (KNN) classifiers to generate a more representative training set and a denoising autoencoder-based deep architecture as kernel predictor. Considering the good agreement between closing price trends and daily extreme price movements, we forecast extreme price movements as an indirect channel for realising accurate price-trend prediction. The experimental results demonstrate the effectiveness of the proposed method in terms of its accuracy compared with traditional machine-learning models in four principal Chinese stock indexes and nine leading individual stocks from nine different major industry sectors.

Original languageEnglish
Title of host publicationNeural Information Processing - 24th International Conference, ICONIP 2017, Proceedings
EditorsDongbin Zhao, El-Sayed M. El-Alfy, Derong Liu, Shengli Xie, Yuanqing Li
PublisherSpringer Verlag
Pages882-892
Number of pages11
ISBN (Print)9783319700953
DOIs
StatePublished - 2017
Event24th International Conference on Neural Information Processing, ICONIP 2017 - Guangzhou, China
Duration: 14 Nov 201718 Nov 2017

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume10635 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference24th International Conference on Neural Information Processing, ICONIP 2017
Country/TerritoryChina
CityGuangzhou
Period14/11/1718/11/17

Keywords

  • Denoising autoencoder
  • K-nearest neighbour
  • Stock-trend prediction

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