Predict Forex Trend via Convolutional Neural Networks

Abstract Deep learning is an effective approach to solving image recognition problems. People draw intuitive conclusions from trading charts. This study uses the characteristics of deep learning to train computers in imitating this kind of intuition in the context of trading charts. The main goal of our approach is combining the time-series modeling and convolutional neural networks (CNNs) to build a trading model. We propose three steps to build the trading model. First, we preprocess the input data from quantitative data to images. Second, we use a CNN, which is a type of deep learning, to train our trading model. Third, we evaluate the model’s performance in terms of the accuracy of classification. The experimental results show that if the strategy is clear enough to make the images obviously distinguishable the CNN model can predict the prices of a financial asset. Hence, our approach can help devise trading strategies and help clients automatically obtain personalized trading strategies.

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10Use the RGB color space to capture the information of moving average lines
11Train the AlexNet model and tweak the parameters to maximize accuracyThe number of epochs used for training is
12Create the AlexNet architecture of the CNN model by using NVIDIA DIGITS with the Caffe back-endDIGITS

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