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Prediction of Interday Stock Prices Using Developmental and Linear Genetic Programming

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Applications of Evolutionary Computing (EvoWorkshops 2009)

Part of the book series: Lecture Notes in Computer Science ((LNTCS,volume 5484))

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Abstract

A developmental co-evolutionary genetic programming approach (PAM DGP) is compared to a standard linear genetic programming (LGP) implementation for trading of stocks across market sectors. Both implementations were found to be impressively robust to market fluctuations while reacting efficiently to opportunities for profit, where PAM DGP proved slightly more reactive to market changes than LGP. PAM DGP outperformed, or was competitive with, LGP for all stocks tested. Both implementations had very impressive accuracy in choosing both profitable buy trades and sells that prevented losses, where this occurred in the context of moderately active trading for all stocks. The algorithms also appropriately maintained maximal investment in order to profit from sustained market upswings.

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Author information

Authors and Affiliations

  1. Memorial University of Newfoundland, St. John‘s, NL, Canada

    Garnett Wilson & Wolfgang Banzhaf

Authors
  1. Garnett Wilson
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  2. Wolfgang Banzhaf
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Editor information

Editors and Affiliations

  1. Department of Animal Production Epidemiology and Ecology, University of Torino, Via Leonardo da Vinci 44, 10095, Grugliasco, Italy

    Mario Giacobini

  2. Quinn School of Business, Belfield, University College Dublin, Dublin 4, Ireland

    Anthony Brabazon

  3. Department of Computer Engineering, University of Parma, Viale Usberti 181/a, 43100, Parma, Italy

    Stefano Cagnoni

  4. Dalla Molle Institute for Artificial Intelligence (IDSIA), Gallelria 2, 6928, Manno-Lugano, Switzerland

    Gianni A. Di Caro

  5. School of Engineering and Applied Science,Aston Triangle, Aston University, B4 7ET, Birmingham, UK

    Anikó Ekárt

  6. Complex Adaptive Systems Group, Instituto Tecnológico de Informática, Ciudad PolitŽcnica de la Innovacin, Edif. 8G Acceso B, 46022, Valencia, Spain

    Anna Isabel Esparcia-Alcázar

  7. Next Generation Itelligent Networks Research Center (nexGIN RC), National University of Computer and Emerging Sciences (NUCES), Islamabad, Pakistan

    Muddassar Farooq

  8. Faculty of Economics and Social Sciences, Helmut-Schmidt-University, Holstenhofweg 85, 22043, Hamburg, Germany

    Andreas Fink

  9. Department of Informatics Engineering, Polo II - Pinhal de Marrocos, University of Coimbra, 3030 - 290, Coimbra, Portugal

    Penousal Machado

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© 2009 Springer-Verlag Berlin Heidelberg

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Wilson, G., Banzhaf, W. (2009). Prediction of Interday Stock Prices Using Developmental and Linear Genetic Programming. In: Giacobini, M., et al. Applications of Evolutionary Computing. EvoWorkshops 2009. Lecture Notes in Computer Science, vol 5484. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-01129-0_21

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  • DOI: https://doi.org/10.1007/978-3-642-01129-0_21

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-01128-3

  • Online ISBN: 978-3-642-01129-0

  • eBook Packages: Computer ScienceComputer Science (R0)

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