The Application of Random Forest in Finance

Zhi Bin Zou; Hong Peng; Lin Kai Luo

doi:10.4028/www.scientific.net/AMM.740.947

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HomeApplied Mechanics and MaterialsApplied Mechanics and Materials Vol. 740The Application of Random Forest in Finance

The Application of Random Forest in Finance

Abstract:

The variation of futures price is affected by a lot of factors. It is a challenge to predict the price’s trend. In this paper, we apply random forest technique to predict the type of K-line in next day. First, we empirically select nine technical indexes as input variables or features. Then, these features and the associated class label, i.e. the type of K-line, are used to construct RF classifier. The experimental results demonstrate that RF is effective and can be used in the trend prediction of futures price.

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Periodical:

Applied Mechanics and Materials (Volume 740)

Pages:

947-951

DOI:

https://doi.org/10.4028/www.scientific.net/AMM.740.947

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Online since:

March 2015

Authors:

Zhi Bin Zou, Hong Peng, Lin Kai Luo*

Keywords:

Futures Trading, Machine Learning, Random Forest, Trend Prediction

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References

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