What machine learning algorithm can be used to predict the stock market?

Alternatively, to predict foreign exchange markets. I know this can get pretty complicated, so as an introduction, I’m looking for a simple prediction algorithm that has some accuracy.

(It’s for a M.Sc. university project that lasts four months)

I’ve read that a multi-layer neural network might be useful. Any thoughts on that? In addition, semantic analysis of social media may provide insight into market behavior which influences the stock market. However, semantic analysis is a bit outside the scope of the project at the moment.


As babelproofreader mentioned, those that have a successful algorithm tend to be very secretive about it. Thus it’s unlikely that any widely available algorithm is going to be very useful out of the box unless you are doing something clever with it (at which point it sort of stops being widely available since you are adding to it).

That said, learning about autoregressive integerated moving average (ARIMA) models might be a useful start for forecasting time-series data. Don’t expect better than random results though.

Source : Link , Question Author : siamii , Answer Author : Community

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