Paper Info
Title
Decision Support System for Foreign Exchange Markets.
Abstract
Selection of the right decision strategy is a crucial factor to success in the foreign exchange market. This article presents an innovative approach how to support related decision steps by means of suitable data mining methods applied on collected data from the market. The motivation is a trading under the best conditions, i.e. with the highest chance to be successful. To meet this requirement, we designed and implemented a decision support system (DSS) for trading on the foreign exchange market which uses a possibility to speculate on this market and in line with extracted rules, economic news and outputs of the technical analysis recommend the future trading direction. We extracted the rules from the historical Forex data with the C5.0 and CART algorithms for decision trees generation. The best achieved accuracy was 56.03% that is typical for this type of data. We used the best rules to design a dynamic trading strategy, which we experimentally verified as profitable.
Year
DOI
Venue
2016
10.1007/978-3-319-52464-1_9
Lecture Notes in Business Information Processing
Keywords
Field
DocType
Forex,Data mining,Decision support system,Technical analysis
Trading strategy,Decision tree,Capital market,Computer science,Foreign exchange market,Decision support system,Operations research,Knowledge management,Market system,Variable pricing,Technical analysis
Conference
Volume
ISSN
Citations 
263
1865-1348
0
PageRank 
References 
Authors
0.34
0
3
Name
Order
Citations
PageRank
Róbert Magyar100.34
Frantisek Babic2168.02
Jan Paralic35613.96