Prediction of the Future Price Trend for Users Based on BP Neural Network

Abstract

Since the last century, the method of quantitative trading has begun to emerge. It is very meaningful to study the formulation of the best trading strategy. The future price trend is predicted based on BP Neural Network time series model, and a Quantitative Decision Model is established by using BIAS and RSI indicators and transaction cost, so as to describe a more complete market situation. We use the Nonlinear Least Square method to fit the BP neural network model and investigate the difference between the prediction model and the actual value. After modeling, we also carried out sensitivity analysis, which revealed the stability of our model for some parameters.