Predicting stock market index using LSTM

The rapid advancement in artificial intelligence and machine learning techniques, availability of large-scale data, and increased computational capabilities of the machine opens the door to develop sophisticated methods in predicting stock price. In the meantime, easy access to investment opportunities has made the stock market more complex and volatile than ever. The world is looking for an accurate and reliable predictive model which can capture the market’s highly volatile and nonlinear behavior in a holistic framework. This study uses a long short-term memory (LSTM), a particular neural network architecture, to predict the next-day closing price of the S&P 500 index. A well-balanced combination of nine…