I NTRODUCING A NEW T ECHNICAL I NDICATOR BASED ON OCTAV O NICESCU I NFORMATIONAL E NERGY AND COMPARE IT WITH B OLLINGER BANDS FOR S&P 500 M OVEMENT P REDICTIONS

Daia Alexandru

No m478b, OSF Preprints from Center for Open Science

Abstract: This research paper demonstrates the invention of the kinetic bands, based on Romanian mathematician and statistician Octav Onicescu’s kinetic energy, also known as “informational energy”, where we use historical data of foreign exchange currencies or indexes to predict the trend displayed by a stock or an index and whether it will go up or down in the future. Here, we explore the imperfections of the Bollinger Bands to determine a more sophisticated triplet of indicators that predict the future movement of prices in the Stock Market. An Extreme Gradient Boosting Modelling was conducted in Python using historical data set from Kaggle, the historical data set spanning all current 500 companies listed. An invariable importance feature was plotted. The results displayed that Kinetic Bands, derived from (KE) are very influential as features or technical indicators of stock market trends. Furthermore, experiments done through this invention provide tangible evidence of the empirical aspects of it. The machine learning code has low chances of error if all the proper procedures and coding are in play. The experiment samples are attached to this study for future references or scrutiny.

Date: 2019-06-20
New Economics Papers: this item is included in nep-big and nep-cmp
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:m478b

DOI: 10.31219/osf.io/m478b

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