Stock Price Prediction using AI for High Frequency Traders

The objective of the research is to develop a prediction algorithm for stock price analysis, specifically targeting the Indian stock market's NIFTY and BANKNIFTY derivative markets, including futures and options. The main objective is to establish a relationship between the dependent factor, stock price, and independent factors such as opening price, closing price, high and low values of stock, and volume of stocks bought. The need for this research emerged from the significant impact of stock market decisions on financial gain for investors. With a high percentage of retail traders in the Indian trade market experiencing losses in recent times, there is a demand for effective prediction techniques to assist investors in making informed decisions. This study differentiates itself from existing literature by focusing specifically on the Indian trade and incorporating deep learning algorithms. In this approch, the solution utilizes a Convolutional Neural Network (CNN) in conjunction with a Long Short Term Memory (LSTM) neural network-based model to analyze various quantitative strategies in stock markets. The CNN is employed for stock selection, automatically extracting features from quantitative data, followed by an LSTM to preserve time-series features, enhancing profit margins. This combined CNN-LSTM model is used for stock price prediction. we will be using stock technical indicator (STI's) and derive a final prediction with the help weighted average ensemble model. The expected outcome of this research is to provide retail traders with a valuable tool for making informed decisions in the Indian stock market. The performance measures of the developed models, such as accuracy values, will be used to evaluate and compare the effectiveness of different deep learning architectures. Theeventual outcome of this paper will contribute to the field of stock market prediction and assist investors in achieving financial gain by adopting AI-based prediction techniques.