A novel methodology for stock investment using episode mining and technical indicators

Yu Feng Lin*, Chien Feng Huang, S. Tseng

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This paper proposes a novel methodology for stock investing using the technique of episode mining and technical indicators. The time-series data of stock price is used for the construction of complex episode events and rules. Our experimental results show that the episode rule mining method not only improves a well-known technical indicator alone, but also assists it in outperforming the benchmark. Based upon the results obtained, we expect this episode mining methodology to advance the research in data mining for finance, and provide an alternative strategy to stock investment in practice.

Original languageEnglish
Title of host publicationProceedings - 2012 Conference on Technologies and Applications of Artificial Intelligence, TAAI 2012
Pages5-10
Number of pages6
DOIs
StatePublished - 2012
Event2012 Conference on Technologies and Applications of Artificial Intelligence, TAAI 2012 - Tainan, Taiwan
Duration: 16 Nov 201218 Nov 2012

Publication series

NameProceedings - 2012 Conference on Technologies and Applications of Artificial Intelligence, TAAI 2012

Conference

Conference2012 Conference on Technologies and Applications of Artificial Intelligence, TAAI 2012
Country/TerritoryTaiwan
CityTainan
Period16/11/1218/11/12

Keywords

  • Cross validation
  • Episode mining
  • Stock investing strategy
  • Technical indicators

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