preprints.org > computer science and mathematics > artificial intelligence and machine learning > doi: 10.20944/preprints202407.1075.v1 (registering DOI)

Preprint Article Version 1 This version is not peer-reviewed

Version 1 : Received: 10 July 2024 / Approved: 12 July 2024 / Online: 12 July 2024 (23:57:06 CEST)

This study investigates the latest advancements in utilizing machine learning techniques for predicting financial market movements. Financial markets are complex systems influenced by numerous factors, making accurate predictions challenging but highly valuable. The research explores various machine learning approaches, including supervised learning, unsupervised learning, reinforcement learning, and deep learning, to enhance the accuracy and reliability of financial market forecasts. The study provides a comprehensive review of current methodologies, highlighting key innovations and their applications in financial market prediction. Techniques such as neural networks, support vector machines, random forests, and ensemble methods are examined in the context of their ability to analyze vast amounts of financial data, identify patterns, and generate actionable insights. Additionally, the research delves into the integration of alternative data sources, such as social media sentiment, news articles, and macroeconomic indicators, to improve prediction models. Through empirical analysis and case studies, the study demonstrates the effectiveness of advanced machine learning models in predicting stock prices, currency exchange rates, and commodity prices. It also discusses the challenges associated with these techniques, including overfitting, data quality issues, and the need for interpretability in model outputs. Findings suggest that machine learning techniques can significantly enhance the predictive power of financial models, offering more accurate and timely insights for investors and financial analysts. The study concludes with recommendations for future research directions, emphasizing the importance of model transparency, the incorporation of diverse data sets, and the continuous adaptation of machine learning algorithms to evolving market conditions.

financial market prediction; machine learning; supervised learning; unsupervised learning; reinforcement learning; deep learning; neural networks; alternative data; stock prices; currency exchange rates; commodity prices; model interpretability.

Computer Science and Mathematics, Artificial Intelligence and Machine Learning

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