Investment Opportunities Forecasting: Extending the Grammar of a GP-based Tool

Abstract

In this paper we present a new version of a GP financial forecasting tool, called EDDIE 8. The novelty of this version is that it allows the GP to search in the space of indicators, instead of using pre-specified ones. We compare EDDIE 8 with its predecessor, EDDIE 7, and find that new and improved solutions can be found. Analysis also shows that, on average, EDDIE 8's best tree performs better than the one of EDDIE 7. The above allows us to characterize EDDIE 8 as a valuable forecasting tool.

Keywords

• Financial Forecasting
• Genetic Programming
• Genetic Decision Tree
• Decision Support Tool