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An inductive learning system for rating securities

  • 3 Machine Learning
  • Conference paper
  • First Online:
Tasks and Methods in Applied Artificial Intelligence (IEA/AIE 1998)

Part of the book series: Lecture Notes in Computer Science ((LNAI,volume 1416))

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Abstract

During the last few years, we have developed an expect system, called PORSEL (PORtfolio SELection system), which uses a small set of rules to select stocks. This paper improves the PORSEL by incorporating several new features and interfaces. The new PORSEL now consists of three components: the information center, the fuzzy stock selector, and the portfolio constructor. The purpose of the information center is to provide representation of several technical indicators such as candlestick charts, moving average of closing prices, and price trends. The fuzzy stock selector evaluates the listed stocks and then assigns a composite score for each stock. The portfolio constructor generates the optimal portfolios for the selected stocks. The new PORSEL also includes a user-friendly interface for adding and deleting rules during the run time. The results of simulation show that our new version of PORSEL outperformed the market almost every year during the testing period.

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Authors and Affiliations

  1. Department of Computer Science, Southern Illinois University, 62901, Carbondale, Illinois, USA

    Mehdi R. Zargham

Authors
  1. Mehdi R. Zargham
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Editor information

Angel Pasqual del Pobil José Mira Moonis Ali

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© 1998 Springer-Verlag Berlin Heidelberg

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Zargham, M.R. (1998). An inductive learning system for rating securities. In: Pasqual del Pobil, A., Mira, J., Ali, M. (eds) Tasks and Methods in Applied Artificial Intelligence. IEA/AIE 1998. Lecture Notes in Computer Science, vol 1416. Springer, Berlin, Heidelberg. https://doi.org/10.1007/3-540-64574-8_434

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  • DOI: https://doi.org/10.1007/3-540-64574-8_434

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-64574-0

  • Online ISBN: 978-3-540-69350-5

  • eBook Packages: Springer Book Archive

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