An intelligent stock trading system using comprehensive features

• An intelligent stock trading system using comprehensive features (ISTSCF) is presented.
• ISTSCF consists of stock information extraction, prediction model learning and stock trading decision.
• Comprehensive features (CF) include sentiment analysis (SA), technical analysis (TA) and trend-based segmentation method (TBSM).
• The results of employing the comprehensive features are significantly better than traditional methods.

The aim of this study is to predict automatic trading decisions in stock markets. Comprehensive features (CF) for predicting future trend are very difficult to generate in a complex environment, especially in stock markets. According to related work, the relevant stock information can help investors formulate objects that may result in better profits. With this in mind, we present a framework of an intelligent stock trading system using comprehensive features (ISTSCF) to predict future stock trading decisions. The ISTSCF consists of stock information extraction, prediction model learning and stock trading decision. We apply three different methods to generate comprehensive features, including sentiment analysis (SA) that provides sensitive market events from stock news articles for sentiment indices (SI), technical analysis (TA) that yields effective trading rules based on trading information on the stock exchange for technical indices (TI), as well as the trend-based segmentation method (TBSM) that raises trading decisions from stock price for trading signals (TS). Experiments on the Taiwan stock market show that the results of employing comprehensive features are significantly better than traditional methods using numeric features alone (without textual sentiment features).

An intelligent stock trading system using the proposed ISTSCF.Figure optionsDownload as PowerPoint slide