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Currency exchange prediction using machine learning, genetic algorithms and technical analysis

2018-05-29 · Gonçalo Abreu, Rui Neves, Nuno Horta

Technical analysis is used to discover investment opportunities. To test this hypothesis we propose an hybrid system using machine learning techniques together with genetic algorithms. Using technical analysis there are more ways to represent a currency exchange time series than the ones it is possible to test computationally, i.e., it is unfeasible to search the whole input feature space thus a genetic algorithm is an alternative. In this work, an architecture for automatic feature selection is proposed to optimize the cross validated performance estimation of a Naive Bayes model using a genetic algorithm. The proposed architecture improves the return on investment of the unoptimized system from 0,43% to 10,29% in the validation set. The features selected and the model decision boundary are visualized using the algorithm t-Distributed Stochastic Neighbor embedding.

📄 PDF Abstract BibTeX arXiv:1805.11232

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BIG-bench Machine Learningfeature selectionTime SeriesTime Series Analysis

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