Deep learning-based predictive models for forex market trends: Practical implementation and performance evaluation

Author:

Nguyen Phuong Dong1,Thao Nguyen Ngoc2,Kim Chi Duong Thi3,Nguyen Hoa-Cuc.3,Mach Bich-Ngoc.3,Nguyen Thanh Q.4ORCID

Affiliation:

1. CIRTech Institute, HUTECH University, Ho Chi Minh City, Vietnam

2. Dong Nai Provincial Police, Bien Hoa City, Dong Nai Province, Vietnam

3. Faculty of Engineering and Technology, Thu Dau Mot University, Thủ Dầu Một, Binh Duong Province, Vietnam

4. Institute of Interdisciplinary Social Sciences, Nguyen Tat Thanh University, Ho Chi Minh City, Vietnam

Abstract

In recent years, there has been growing interest in the prediction of financial market trends, due to its potential applications in the real world. Unlike traditional investment avenues such as the stock market, the foreign exchange (Forex) market revolves around two primary types of orders that correspond with the market's direction: upward and downward. Consequently, forecasting the behaviour of the Forex behaviour market can be simplified into a binary classification problem to streamline its complexity. Despite the significant enhancements and improvements in performance seen in recent proposed predictive models for the forex market, driven by the advancement of deep learning in various domains, it remains imperative to approach these models with careful consideration of best practices and real-world applications. Currently, only a limited number of papers have been dedicated to this area. This article aims to bridge this gap by proposing a practical implementation of deep learning-based predictive models that perform well for real-world trading activities. These predictive mechanisms can help traders in minimising budget losses and anticipate future risks. Furthermore, the paper emphasises the importance of focussing on return profit as the evaluation metric, rather than accuracy. Extensive experimental studies conducted on realistic Yahoo Finance data sets validate the effectiveness of our implemented prediction mechanisms. Furthermore, empirical evidence suggests that employing the use of three-value labels yields superior accuracy performance compared to traditional two-value labels, as it helps reduce the number of orders placed.

Publisher

SAGE Publications

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3