Is it possible to develop an algorithm/computer program that could estimate the future stock market changes? [closed]
Can computers predict the stock market?
Not only are machines incapable of predicting a black swan event, but, in reality, they are more likely to cause one, as traders found out the hard way during the 2010 flash crash when an algorithmic computer malfunction caused a temporary market meltdown. Ultimately, A.I is doomed to fail at stock market prediction.
How do algorithms control the stock market?
Simply put, algorithms are complex math equations used to program computers to make decisions. They come into use in a number of industries. On Wall Street, traders employ algo trading to buy and sell stocks automatically. Algorithmic trading may extend momentum trades as stocks make a big run.
Is the stock market an algorithm?
According to Deutsche Bank, 90% of equity-futures trades and 80% of cash-equity trades are executed by algorithms without any human input. Equity-derivative markets are also dominated by electronic execution according to Larry Tabb of the Tabb Group, a research firm.
Why is it so hard to predict the stock market?
Predicting the market is challenging because the future is inherently unpredictable. Short-term traders are typically better served by waiting for confirmation that a reversal is at hand, rather than trying to predict a reversal will happen in the future.
How can machine learning predict stock market?
Google Stock Price Prediction Using LSTM
- Import the Libraries.
- Load the Training Dataset. …
- Use the Open Stock Price Column to Train Your Model.
- Normalizing the Dataset.
- Creating X_train and y_train Data Structures.
- Reshape the Data.