It is difficult to predict stock market performance and involves a certain amount of risk. An accurate prediction could result in a significant amount of profit. The stock market is influenced by a number of factors:
- News, both domestic and international
- Government reports
- Natural disasters
What are Stock Prediction Systems?
Stock prediction systems are programs that use algorithms to predict future trends in the stock market. The algorithms used in stock prediction systems were originally used for scientific research in fields such as genetics, astronomy, and quantum physics.
However, scientists soon discovered that these algorithms can be applied to stock markets as the field produces huge amounts of data and follows some sort of pattern.
The most commonly used techniques in stock market prediction include genetic algorithms (GA) and artificial neural networks (ANNs).
The use of ANN methods for stock prediction has been found to be widely successful. The ANNs predict future lows by analyzing low price and time lags, while the future highs are predicted using lagged highs. These predictions are then used to determine to stop prices for buying and selling.
Benefits of using a Stock Prediction System
Predicting stock market performance is challenging and risky. There are many factors to be considered - physical factors, psychological and behavioral factors. These aspects make share prices unstable and difficult to predict accurately. However, with the use of algorithms and data science, there has been an improvement in the predictions. The following are some of the benefits of using stock prediction systems:
- Using ANN systems, which utilize a classification approach as opposed to a traditional quantitative output approach, produces better predictive reliability.
- Certain kinds of data which could earlier not be collected or processed, like unstructured text data, can be used for making predictions which the help of algorithms. This unstructured text data refers to news reports or public sentiment. Use of Big Data techniques makes it possible to keep track of values, opinions and behavioral patterns of people while making predictions; this means that the predictions are not based solely on technical or numerical data.
- Algorithms help in speedily processing huge amounts of data that is perishable. In the stock market, conditions are constantly and rapidly changing. This means that in order to predict future events in the market, a reliable and quick system is needed. Algorithms provide this benefit. Algorithms may use pre-processed data, reducing data storage space and speeding up the calculations.
Computer Trading Systems offers prediction systems for stocks, IPOs, ICOs, ETF indexes, bonds, Forex currencies as well as Cryptocurrencies. We are Harvard and MIT trained and have designed advanced algorithm programs that can predict the markets in the current conditions. We can teach you how to use our systems and websites to trade and make consistent profits in the markets.
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