Published April 30, 2024 | Version CC-BY-NC-ND 4.0
Journal article Open

Exploring the Future of Stock Market Prediction through Machine Learning: An Extensive Review and Outlook

  • 1. Associate Professor, Department of Computer Science and Engineering, IES Group of Institutions Bhopal (M.P), India.
  • 1. Associate Professor, Department of Computer Science and Engineering, IES Group of Institutions Bhopal (M.P), India.
  • 2. Research Scholar, Department of Computer Science and Engineering, Eklavya University, Damoh (M.P), India.
  • 3. Professor, Department of Computer Science and Engineering, Eklavya University, Damoh (M.P), India.
  • 4. Professor, Department of Computer Science and Engineering, Eklvya University, Damoh (M.P), India.

Description

Abstract: A thorough analysis of trends and future directions reveals how machine learning is revolutionizing stock market forecasting. The most recent research on machine learning applications for stock market prediction during the previous 20 years is methodically reviewed in this article. Artificial neural networks, support vector machines, genetic algorithms in conjunction with other methodologies, and hybrid or alternative AI approaches were the categories used to group journal articles. Every category was examined to identify trends, distinct perspectives, constraints, and areas that needed more research. The results provide insightful analysis and suggestions for further study in this developing topic.

Files

E983713050424.pdf

Files (551.3 kB)

Name Size Download all
md5:2f8ed630928553ce6d87b926502dfebb
551.3 kB Preview Download

Additional details

Identifiers

Dates

Accepted
2024-04-15
Manuscript received on 06 March 2024 | Revised Manuscript received on 05 April 2024 | Manuscript Accepted on 15 April 2024 | Manuscript published on 30 April 2024.

References

  • Ravikumar, S. and P. Saraf. Prediction of stock prices using machine learning (regression, classification) Algorithms. in 2020 International Conference for Emerging Technology (INCET). 2020. IEEE. https://doi.org/10.1109/INCET49848.2020.9154061
  • Gandhi, R., Support vector machine—introduction to machine learning algorithms. Towards Data Science, 2018. 7(06).
  • Kurani, A., et al., A comprehensive comparative study of artificial neural network (ANN) and support vector machines (SVM) on stock forecasting. Annals of Data Science, 2023. 10(1): p. 183-208. https://doi.org/10.1007/s40745-021-00344-x
  • Goswami, R.D., S. Chakraborty, and B. Misra, Variants of genetic algorithms and their applications, in Applied Genetic Algorithm and Its Variants: Case Studies and New Developments. 2023, Springer. p. 1-20. https://doi.org/10.1007/978-981-99-3428-7_1
  • Vijh, M., et al., Stock closing price prediction using machine learning techniques. Procedia computer science, 2020. 167: p. 599- 606. https://doi.org/10.1016/j.procs.2020.03.326
  • Billah, M.M., et al., Stock price prediction: comparison of different moving average techniques using deep learning model. Neural Computing and Applications, 2024: p. 1-11. https://doi.org/10.1007/s00521-023-09369-0
  • Nabipour, M., et al., Deep learning for stock market prediction. Entropy, 2020. 22(8): p. 840. https://doi.org/10.3390/e22080840
  • Moghar, A. and M. Hamiche, Stock market prediction using LSTM recurrent neural network. Procedia computer science, 2020. 170: p. 1168-1173. https://doi.org/10.1016/j.procs.2020.03.049
  • Liu, S., et al., Financial time-series forecasting: Towards synergizing performance and interpretability within a hybrid machine learning approach. arXiv preprint arXiv:2401.00534, 2023. https://doi.org/10.21203/rs.3.rs-3825306/v1
  • Ayyildiz, N. and O. Iskenderoglu, How effective is machine learning in stock market predictions? Heliyon, 2024. 10(2). https://doi.org/10.1016/j.heliyon.2024.e24123
  • Bagheri Mazraeh, N., A. Daneshvar, and M. Madanchi Zaj, Selection and multi-objective optimisation of stock portfolio using a combination of machine learning methods and meta-heuristic algorithms. International Journal of Finance & Managerial Accounting, 2024. 9(34): p. 61-80.
  • Bas, E., E. Egrioglu, and T. Cansu, Robust training of median dendritic artificial neural networks for time series forecasting. Expert Systems with Applications, 2024. 238: p. 122080. https://doi.org/10.1016/j.eswa.2023.122080
  • Souto, H.G. and A. Moradi, Introducing NBEATSx to realized volatility forecasting. Expert Systems with Applications, 2024. 242: p. 122802. https://doi.org/10.1016/j.eswa.2023.122802
  • Chavan, P.S. and S.T. Patil, Parameters for stock market prediction. International Journal of Computer Technology and Applications, 2013. 4(2): p. 337.
  • Kalyoncu, S., Deep learning networks for stock market analysis. 2020, İstanbul Sabahattin Zaim Üniversitesi.
  • Chong, E., C. Han, and F.C. Park, Deep learning networks for stock market analysis and prediction: Methodology, data representations, and case studies. Expert Systems with Applications, 2017. 83: p. 187-205. https://doi.org/10.1016/j.eswa.2017.04.030Chong, E., C. Han, and F.C. Park, Deep learning networks for stock market analysis and prediction: Methodology, data representations, and case studies. Expert Systems with Applications, 2017. 83: p. 187-205. https://doi.org/10.1016/j.eswa.2017.04.030
  • Rahman, M.T. and R. Akhter, Forecasting Stock Market Price Using Multiple Machine Learning Technique. Preprint, 2021.
  • Rath, S., N.R. Das, and B.K. Pattanayak, An Analytic Review on Stock Market Price Prediction using Machine Learning and Deep Learning Techniques. Recent Patents on Engineering, 2024. 18(2): p. 88-104. https://doi.org/10.2174/1872212118666230303154251
  • Rosillo, R., J. Giner, and D. De la Fuente, Stock market simulation using support vector machines. Journal of Forecasting, 2014. 33(6): p. 488-500. https://doi.org/10.1002/for.2302
  • Amin, M.S., et al., Harmonizing Macro-Financial Factors and Twitter Sentiment Analysis in Forecasting Stock Market Trends. Journal of Computer Science and Technology Studies, 2024. 6(1): p. 58-67. https://doi.org/10.32996/jcsts.2024.6.1.7
  • Zhang, L., et al., A Hybrid Forecasting Method for Anticipating Stock Market Trends via a Soft-Thresholding De-noise Model and Support Vector Machine (SVM). World Basic and Applied Sciences Journal, 2023. 13(2023): p. 597-602.
  • Sheth, D. and M. Shah, Predicting stock market using machine learning: best and accurate way to know future stock prices. International Journal of System Assurance Engineering and Management, 2023. 14(1): p. 1-18. https://doi.org/10.1007/s13198- 022-01811-1
  • Brogaard, J. and A. Zareei, Machine learning and the stock market. Journal of Financial and Quantitative Analysis, 2023. 58(4): p. 1431- 1472. https://doi.org/10.1017/S0022109022001120
  • Zhao, Z., et al., Comparison of three machine learning algorithms using google earth engine for land use land cover classification. Rangeland Ecology & Management, 2024. 92: p. 129-137. https://doi.org/10.1016/j.rama.2023.10.007
  • Dash, R.K., et al., Fine-tuned support vector regression model for stock predictions. Neural Computing and Applications, 2023. 35(32): p. 23295-23309. https://doi.org/10.1007/s00521-021-05842-w
  • Yi, X., X. Wen, and X. Yin. Time series prediction and application based on multi-kernel support vector regression. in Second International Symposium on Computer Applications and Information Systems (ISCAIS 2023). 2023. SPIE. https://doi.org/10.1117/12.2683400
  • Hao, P.-Y. Application of a Novel Deep Fuzzy Dual Support Vector Regression Machine in Stock Price Prediction. in 2022 5th International Conference on Computational Intelligence and Networks (CINE). 2022. IEEE. https://doi.org/10.1109/CINE56307.2022.10037482
  • Mahmoudinazlou, S. and C. Kwon, A hybrid genetic algorithm for the min–max Multiple Traveling Salesman Problem. Computers & Operations Research, 2024. 162: p. 106455. https://doi.org/10.1016/j.cor.2023.106455
  • Gen, M. and L. Lin, Genetic algorithms and their applications, in Springer handbook of engineering statistics. 2023, Springer. p. 635- 674. https://doi.org/10.1007/978-1-4471-7503-2_33
  • Alam, T., et al., Genetic algorithm: Reviews, implementations, and applications. arXiv preprint arXiv:2007.12673, 2020. https://doi.org/10.1007/s00453-020-00697-4
  • Katoch, S., S.S. Chauhan, and V. Kumar, A review on genetic algorithm: past, present, and future. Multimedia tools and applications, 2021. 80: p. 8091-8126. https://doi.org/10.1007/s11042-020-10139-6
  • Zhang, Y.-j., Forecasting the Artificial Intelligence index returns: a hybrid approach, in Forecasting the Artificial Intelligence index returns: a hybrid approach: Zhang, Yue-jun. 2021, Pretoria, South Africa: Department of Economics, University of Pretoria.
  • Chopra, R. and G.D. Sharma, Application of artificial intelligence in stock market forecasting: a critique, review, and research agenda. Journal of risk and financial management, 2021. 14(11): p. 526. https://doi.org/10.3390/jrfm14110526
  • Ghashami, F., K. Kamyar, and S.A. Riazi, Prediction of stock market index using a hybrid technique of artificial neural networks and particle swarm optimization. Applied Economics and Finance, 2021. 8(1): p. 10.11114. https://doi.org/10.11114/aef.v8i3.5195
  • Thirunavukkarasu, M., Y. Sawle, and H. Lala, A comprehensive review on optimization of hybrid renewable energy systems using various optimization techniques. Renewable and Sustainable Energy Reviews, 2023. 176: p. 113192. https://doi.org/10.1016/j.rser.2023.113192
  • Choi, J., et al., Hybrid Information Mixing Module for Stock Movement Prediction. IEEE Access, 2023. 11: p. 28781-28790. https://doi.org/10.1109/ACCESS.2023.3258695
  • Bustos, O. and A. Pomares-Quimbaya, Stock market movement forecast: A systematic review. Expert Systems with Applications, 2020. 156: p. 113464. https://doi.org/10.1016/j.eswa.2020.113464
  • Islam, M.T., et al., Revolutionizing Retail: A Hybrid Machine Learning Approach for Precision Demand Forecasting and Strategic Decision-Making in Global Commerce. Journal of Computer Science and Technology Studies, 2024. 6(1): p. 33-39. https://doi.org/10.32996/jcsts.2024.6.1.4
  • Zhong, X. and D. Enke, Predicting the daily return direction of the stock market using hybrid machine learning algorithms. Financial Innovation, 2019. 5(1): p. 1-20. https://doi.org/10.1186/s40854-019- 0138-0
  • Kuo, R. and T.-H. Chiu, Hybrid of jellyfish and particle swarm optimization algorithm-based support vector machine for stock market trend prediction. Applied Soft Computing, 2024: p. 111394. https://doi.org/10.1016/j.asoc.2024.111394
  • Long, W., et al., A hybrid model for stock price prediction based on multi-view heterogeneous data. Financial Innovation, 2024. 10(1): p. 48. https://doi.org/10.1186/s40854-023-00519-w
  • Riyazuddin, Y. Md., Basha, S. M., Reddy, K. K., & Banu, S. N. (2020). Effective Usage of Support Vector Machine in Face Detection. In International Journal of Engineering and Advanced Technology (Vol. 9, Issue 3, pp. 1336–1340). https://doi.org/10.35940/ijeat.c5406.029320
  • Sripada, N. K., Sirikonda, S., Kumar, N. V., & Siruvoru, V. (2019). Support Vector Machines to Identify Information towards FixedDimensional Vector Space. In International Journal of Innovative Technology and Exploring Engineering (Vol. 8, Issue 10, pp. 4452– 4455). https://doi.org/10.35940/ijitee.j9826.0881019
  • Muthukrishnan, Dr. R., & Prakash, N. U. (2023). Validate Model Endorsed for Support Vector Machine Alignment with Kernel Function and Depth Concept to Get Superlative Accurateness. In International Journal of Basic Sciences and Applied Computing (Vol. 9, Issue 7, pp. 1–5). https://doi.org/10.35940/ijbsac.g0486.039723