Operations Research, Systems Engineering and Industrial Engineering Commons^™

Stock Market Prediction Using Different Neural Network Classification Architectures, Karsten Schierholt, Cihan H. Dagli

Engineering Management and Systems Engineering Faculty Research & Creative Works

In recent years, many attempts have been made to predict the behavior of bonds, currencies, stocks, or stock markets. The Standard and Poors 500 Index is modeled using different neural network classification architectures. Most previous experiments used multilayer perceptrons for stock market forecasting. A multilayer perceptron architecture and a probabilistic neural network are used to predict the incline, decline, or steadiness of the index. The results of trading with the advice given by the network is then compared with the maximum possible performance and the performance of the index. Results show that both networks can be trained to perform better …