Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
skip to main content
article

Enhancing Financial Investment Decision-Making With Deep Learning Model

Published: 21 June 2024 Publication History

Abstract

This paper introduces the ISSA-BiLSTM-TPA model to improve financial investment decision-making. Traditional deep learning models face limitations in handling the complexity and uncertainty of financial markets. Our approach incorporates attention mechanisms, Bidirectional Long Short-Term Memory (BiLSTM), and Temporal Pattern Attention (TPA) to enhance accuracy in modeling and forecasting financial time series. The attention mechanism focuses on crucial information, BiLSTM captures bidirectional dependencies, and TPA identifies optimal solutions. Experimental results show higher prediction accuracy compared to traditional models, offering more reliable decision support for financial practitioners. Continuous optimization aims to provide innovative decision-making tools for the finance industry, advancing deep learning technology in finance.

References

[1]
Barra, S., Carta, S. M., Corriga, A., Podda, A. S., & Recupero, D. R. (2020). Deep learning and time series-to-image encoding for financial forecasting. IEEE/CAA Journal of Automatica Sinica, 7(3), 683–692.
[2]
Bian, L., Zhang, L., Zhao, K., Wang, H., & Gong, S. (2021). Image-based scam detection method using an attention capsule network. IEEE Access : Practical Innovations, Open Solutions, 9, 33654–33665.
[3]
Buch, R., Grimm, S., Korn, R., & Richert, I. (2023). Estimating the value-at-risk by temporal VAE. Risks, 11(5), 79.
[4]
Bukhari, A. H., Raja, M. A. Z., Sulaiman, M., Islam, S., Shoaib, M., & Kumam, P. (2020). Fractional neuro-sequential ARFIMA-LSTM for financial market forecasting. IEEE Access : Practical Innovations, Open Solutions, 8, 71326–71338.
[5]
Caliskan, H., Yayla, O. F., & Genc, Y. (2023). A comparative analysis of synthetic data generation with VAE and CTGAN models on financial credit loan offer data [Paper presentation]. 2023 8th International Conference on Computer Science and Engineering (UBMK), location of conference.
[6]
Chen, X., Wang, J., & Zhong, X. (2024). Return predictability of prospect theory: Evidence from the Thailand stock market. Pacific-Basin Finance Journal, 83, 102199.
[7]
Cheng, L., van Dongen, B. F., & van der Aalst, W. M. (2019). Scalable discovery of hybrid process models in a cloud computing environment. IEEE Transactions on Services Computing, 13(2), 368–380.
[8]
Georgopoulos, S. P., Tziatzios, P., Stavrinides, S. G., Antoniades, I. P., & Hanias, M. P. (2023). Reservoir computing vs. neural networks in financial forecasting. International Journal of Computational Economics and Econometrics, 13(1), 1–22.
[9]
Gharehchopogh, F. S., Namazi, M., Ebrahimi, L., & Abdollahzadeh, B. (2023). Advances in sparrow search algorithm: A comprehensive survey. Archives of Computational Methods in Engineering, 30(1), 427–455. 36034191.
[10]
Hansun, S., & Young, J. C. (2021). Predicting LQ45 financial sector indices using RNN-LSTM. Journal of Big Data, 8(1), 1–13. 33425651.
[11]
He, K., Yang, Q., Ji, L., Pan, J., & Zou, Y. (2023). Financial time series forecasting with the deep learning ensemble model. Mathematics, 11(4), 1054.
[12]
Hosaka, T. (2019). Bankruptcy prediction using imaged financial ratios and convolutional neural networks. Expert Systems with Applications, 117, 287–299.
[13]
Hoseinzade, E., & Haratizadeh, S. (2019). CNNpred: CNN-based stock market prediction using a diverse set of variables. Expert Systems with Applications, 129, 273–285.
[14]
Islam, M. R., & Nguyen, N. (2020). Comparison of financial models for stock price prediction. Journal of Risk and Financial Management, 13(8), 181.
[15]
Javed Awan, M., Mohd Rahim, M. S., Nobanee, H., Munawar, A., Yasin, A., & Zain, A. M. (2021). Social media and stock market prediction: A big data approach. Computers, Materials & Continua, 67(2), 2569–2583.
[16]
Li, X., Liu, Y., Huang, C., & Zhou, X. (2021). Financial time series prediction based on GGM-GAN [Paper presentation]. 2021 16th International Conference on Intelligent Systems and Knowledge Engineering (ISKE), location of conference.
[17]
Liu, C., Zeng, Q., Cheng, L., Duan, H., & Cheng, J. (2021). Measuring similarity for data-aware business processes. IEEE Transactions on Automation Science and Engineering, 19(2), 1070–1082.
[18]
Liu, Q., Zheng, C., He, H., & Wu, L. (2022). A variable step size lms speech denoising algorithm based on wavelet threshold. Journal of Jilin University Science Edition, 60, 943–949.
[19]
Liu, R., Zhang, M., Yao, Y., & Yu, F. (2022). A novel high-dimensional multi-objective optimization algorithm for global sorting. Journal of Jilin University Science Edition, 60(3), 664–670.
[20]
LiuY.LiuQ.ZhaoH.PanZ.LiuC. (2020). Adaptive quantitative trading: An imitative deep reinforcement learning approach. In proceedings of the AAAI Conference on Artificial Intelligence. Publisher. 10.1609/aaai.v34i02.5587
[21]
Long, J., Chen, Z., He, W., Wu, T., & Ren, J. (2020). An integrated framework of deep learning and knowledge graph for prediction of stock price trend: An application in Chinese stock exchange market. Applied Soft Computing, 91, 106205.
[22]
Majiid, M. R. N., Fredyan, R., & Kusuma, G. P. (2023). Application of ensemble transformer-RNNs on stock price prediction of bank Central Asia. International Journal of Intelligent Systems and Applications in Engineering, 11(2), 471–477.
[23]
Meng, T. L., & Khushi, M. (2019). Reinforcement learning in financial markets. Data, 4(3), 110.
[24]
Nabipour, M., Nayyeri, P., Jabani, H., Mosavi, A., Salwana, E., & S, S. (2020). Deep learning for stock market prediction. Entropy (Basel, Switzerland), 22(8), 840. 33286613.
[25]
Niforatos, J. D., & Pescatore, R. M. (2019). Financial relationships with industry among guideline authors for the management of acute ischemic stroke. The American Journal of Emergency Medicine, 37(5), 921–923. 30704949.
[26]
Park, H., Sim, M. K., & Choi, D. G. (2020). An intelligent financial portfolio trading strategy using deep Q-learning. Expert Systems with Applications, 158, 113573.
[27]
Shah, M., Borade, H., Sanghavi, V., Purohit, A., Wankhede, V., & Vakharia, V. (2023). enhancing tool wear prediction accuracy using walsh–hadamard transform, DCGAN and dragonfly algorithm-based feature selection. Sensors (Basel), 23(8), 3833. 37112174.
[28]
Sreedharan, M., Khedr, A. M., & El Bannany, M. (2020). A multi-layer perceptron approach to financial distress prediction with genetic algorithm. Automatic Control and Computer Sciences, 54(6), 475–482.
[29]
Srivastava, P. R., Zhang, Z. J., & Eachempati, P. (2021). Deep neural network and time series approach for finance systems: Predicting the movement of the Indian stock market. [JOEUC]. Journal of Organizational and End User Computing, 33(5), 204–226.
[30]
Sun, S., Wang, S., & Wei, Y. (2020). A new ensemble deep learning approach for exchange rates forecasting and trading. Advanced Engineering Informatics, 46, 101160.
[31]
Sun, Y., Hu, W., Liu, F., Huang, F., & Wang, Y. (2022). SSA: A content-based sparse attention mechanism [Paper presentation. International Conference on Knowledge Science, Engineering and Management, location of conference. Tsantekidis, A., Passalis, N., & Tefas, A. (2021). Diversity-driven knowledge distillation for financial trading using deep reinforcement learning. Neural Networks, 140, 193–202.
[32]
Tsantekidis, A., Passalis, N., Toufa, A.-S., Saitas-Zarkias, K., Chairistanidis, S., & Tefas, A. (2020). Price trailing for financial trading using deep reinforcement learning. IEEE Transactions on Neural Networks and Learning Systems, 32(7), 2837–2846. 32516114.
[33]
Vakharia, V., & Gujar, R. (2019). Prediction of compressive strength and portland cement composition using cross-validation and feature ranking techniques. Construction & Building Materials, 225, 292–301.
[34]
Wang, S., Ma, C., Xu, Y., Wang, J., & Wu, W. (2022). A hyperparameter optimization algorithm for the LSTM temperature prediction model in data center. Scientific Programming, 6519909, 1–13. Advance online publication.
[35]
Widiputra, H., Mailangkay, A., & Gautama, E. (2021). Multivariate CNN-LSTM model for multiple parallel financial time-series prediction. Complexity, 2021, 1–14.
[36]
Yang, M., & Wang, J. (2022). Adaptability of financial time series prediction based on BiLSTM. Procedia Computer Science, 199, 18–25.
[37]
Zhang, Q., Qin, C., Zhang, Y., Bao, F., Zhang, C., & Liu, P. (2022). Transformer-based attention network for stock movement prediction. Expert Systems with Applications, 202, 117239.
[38]
Zhi, X., Xue, L., Zhi, W., Li, Z., Zhao, B., Wang, Y., & Shen, Z. (2021). Financial fake news detection with multi fact CNN-LSTM model [Paper presentation]. 2021 IEEE 4th International Conference on Electronics Technology (ICET), location of connference.
[39]
ZhouH.ZhangS.PengJ.ZhangS.LiJ.XiongH.ZhangW. (2021). Informer: Beyond efficient transformer for long sequence time-series forecasting. In Proceedings of the AAAI Conference on Artificial Intelligence. Publisher. 10.1609/aaai.v35i12.17325

Recommendations

Comments

Information & Contributors

Information

Published In

cover image Journal of Organizational and End User Computing
Journal of Organizational and End User Computing  Volume 36, Issue 1
May 2024
1995 pages

Publisher

IGI Global

United States

Publication History

Published: 21 June 2024

Author Tags

  1. Attention Mechanism
  2. BiLSTM
  3. Deep Learning
  4. Financial Investment Decision-Making
  5. ISSA
  6. Time Series Forecasting

Qualifiers

  • Article

Contributors

Other Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

  • 0
    Total Citations
  • 0
    Total Downloads
  • Downloads (Last 12 months)0
  • Downloads (Last 6 weeks)0
Reflects downloads up to 10 Oct 2024

Other Metrics

Citations

View Options

View options

Get Access

Login options

Media

Figures

Other

Tables

Share

Share

Share this Publication link

Share on social media