Stock Prediction with Neural Network Using LSTM

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Abstract—This is the report of project 1 for II. RELATED WORK

the Neuro Network. In this project, next 5
days’ stock should be predict whilst enormous A. Data Loading
amount of data from the past would be fed in The thing people who are interested in
training the model for this prediction. daily stock trading is the prices of Open,
Keywords—deep learning, LSTM, Stock,
High, Low, Close, Volume, and so forth. In
Prediction Project 1, next 5 days closing price are
required predicting as accurately as
I. INTRODUCTION (HEADING 1) possible. For the sake, we need to pay keen
The formatter will need to create these attentiveness on Closing Price in the past
components, incorporating the applicable and apt method of neural network.
criteria that follow.

XXX-X-XXXX-XXXX-X/XX/$XX.00 ©20XX IEEE

 As the dataset TA provided with, there
are rows of data for each day from 2012.
Date, Open, High, Low, Close, and
Volume are included in each row, of which
Closing data could be fetched easily with
python data frame.A4 paper size. If you are
using US letter-sized paper, please close
this file and download the Microsoft Word,
Letter file.
B. Process to Choose and Devise the
Model
Concerning the method utilized to predict
the prices, the stock data show the trait of
sequence with date. In real life, language
translation or voice recognition are closely
akin to it, of which people are tend to be
associate with Recurrent Neural Network.
RNN is flexible to deal with the serial data,
but in term of long-term dependency, the
status quo from previous moment would
affect the next state. With the network
layers growing increasingly, the model
might have the difficulties handling error or
gradient explosion/vanishing, which might
result in failure of optimizing and less
aptitude for learning. The lengthier the
series, the deeper the network. In order to
involve in incorporates time delays and
feedback from the previous results,
controlling states which are referred to as
gated state or gated memory would be
acceptable.
As LSTM, therefore, is chosen in the
project, it’s also used for avoiding the
gradient problem and being augmented by
recurrent gates, so-called "forget gates".
LSTM prevents backpropagated errors
from vanishing or exploding. In lieu, errors
can flow backwards through unlimited
numbers of virtual layers unfolded in
space. That is, LSTM can learn tasks that
require memories of events that occurred
thousands or more of discrete time steps in
retrospect. LSTM works even given long
delays between significant events and can
deal with signals that mix low and high
frequency components.
C. Data Separating to Training and
Testing Groups
In the dataset TA provided with, there are
approximately 2400 or more days’ data
from 2012 to 2022. In deep learning
process, we need to separate all the data in
three groups, training, verifying, and
testing. Verifying data would be ignorant
due to enough samples. Proportion devised
for the training data and testing data would
be 49:1.
III. EXPERIMENT SETTING
A. Data Scaling
Min/Max Scaler is set to convert all the
Closing price data into 0 or 1 while
forming data with format of data frame in
to the format model can accept. Same way
to cope with the testing data before putting
them to predicting session.
B. Regularization: Dropout for Overfitting
With respect to overfitting, the units, also
know as layers, was set as 50 at first. If
time is enough or further curiosity is
inspired, different number of layers would
be tested to find the optimal one if more or
fewer layers. The time step hidden stats
would be set to return, in which all of them
are regard as the feedback. The next step
the model would do is dropout 20% of the
neurons in hidden layers to prevent the
result from overfitting. In this section,
three time of layer fed with data built and
neurons dropout would be done here. As
requirement shows, 5 consecutive days’
data after now is needed from the model,
so Dense function is used to print out 5
numeric data in a row.
Model would be compiled after the step
was done to configure the training process.
First, optimizer would be set as adaptive
moment estimation which fits for updating
neurons’ weight iteratively with less cache
and better performance of calculation. In
the setting of the loss function, Mean-
Square Error was selected in this model for
evaluating the quality of the residual.

When it comes to training session, the

training data would be fed into the model
setting epoch as 25 and batch size as
default. The prediction session will go after
the model has its own training done and
give the 5 scaled data to converted into
authentic predicted data.

IV. EXPERIMENT RESULT

A. Result
In the 5 given further future data,
B. Fetch additional data from yahoo to
train and see if the the result from the
predicting model would be much more
accurate
In favor of realizing if the amount of data
maters, the data from 2007,in which Lotus
became listed company, was imported to
the project. However, the result which
should be expected to surpass the one
abovementioned did not work.

V. CONCLUSION
REFERENCE