AlphaB3– Expert Advisor using Artificial Neural Networks and Genetic Algorithms to Predict Stock Market Trends

• Aline Machado – Instituto Federal de Educação Ciência e Tecnologia da Bahia (IFBA)
• Caio Carvalho - Instituto Federal de Educação Ciência e Tecnologia da Bahia (IFBA)
• Antônio Souza - Instituto Federal de Educação Ciência e Tecnologia da Bahia (IFBA)
• Márcio Macedo - Instituto Federal de Educação Ciência e Tecnologia da Bahia (IFBA)

Abstract

Understanding the relationship between the stock market and a country's economy is an essential part of the components of any financial decision-making system. This article describes the steps for creating an Expert Advisor (EA) called AlphaB3, specialized in stock trading in the Brazilian financial market. AlphaB3 uses neural networks and genetic algorithms to dynamically buy or sell financial assets based on the change in share value. According to the assessments of AlphaB3, when a neural network is trained with database, the mechanism of creation of investment guide can be used to buy the greater profit than the use of an EA based on an alternative rule.

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