Analysis of Intraday Financial Market Using ML and Neural Networks for GBP/USD Currency Pair Price Forecasting

Melis Zhalalov, Vitaliy Milke

2024

Abstract

This study employs a range of machine learning and artificial neural network techniques for financial market price prediction. The approach involves data preprocessing, feature engineering, and model evaluation using daily and 5-minute interval records. Leveraging methods like K-Nearest Neighbors, Logistic Regression, Decision Trees, Random Forest, Support Vector Machines, Multi-Layer Perceptron and Long Short-Term Memory networks, the models exhibit distinct strengths and limitations. Notably, the LSTM model achieved an accuracy of 63%, while Random Forest demonstrated 60% accuracy, indicating promising results for intraday trading. It is essential to acknowledge that due to the exclusion of night hours, the approach is tailored specifically for intraday trading. This study offers a valuable approach to exchange rate prediction, providing an additional practical resource for practitioners and researchers in the field of financial market forecasting.

Paper Citation

in Harvard Style

Zhalalov M. and Milke V. (2024). Analysis of Intraday Financial Market Using ML and Neural Networks for GBP/USD Currency Pair Price Forecasting. In Proceedings of the 16th International Conference on Agents and Artificial Intelligence - Volume 3: ICAART; ISBN 978-989-758-680-4, SciTePress, pages 734-741. DOI: 10.5220/0012386700003636

in Bibtex Style

@conference{icaart24,
author={Melis Zhalalov and Vitaliy Milke},
title={Analysis of Intraday Financial Market Using ML and Neural Networks for GBP/USD Currency Pair Price Forecasting},
booktitle={Proceedings of the 16th International Conference on Agents and Artificial Intelligence - Volume 3: ICAART},
year={2024},
pages={734-741},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012386700003636},
isbn={978-989-758-680-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 16th International Conference on Agents and Artificial Intelligence - Volume 3: ICAART
TI - Analysis of Intraday Financial Market Using ML and Neural Networks for GBP/USD Currency Pair Price Forecasting
SN - 978-989-758-680-4
AU - Zhalalov M.
AU - Milke V.
PY - 2024
SP - 734
EP - 741
DO - 10.5220/0012386700003636
PB - SciTePress