The Design of an Intelligent Lightweight Stock Trading System Using Deep Learning Models: Employing Technical Analysis Methods

Abstract

Individual investors often struggle to predict stock prices due to the limitations imposed by the computational capacities of personal laptop Graphics Processing Units (GPUs) when running intensive deep learning models. This study proposes solving these GPU constraints by integrating deep learning models with technical analysis methods. This integration significantly reduces analysis time and equips individual investors with the ability to identify stocks that may yield potential gains or losses in an efficient manner. Thus, a comprehensive buy and sell algorithm, compatible with average laptop GPU performance, is introduced in this study. This algorithm offers a lightweight analysis method that emphasizes factors identified by technical analysis methods, thereby providing a more accessible and efficient approach for individual investors. To evaluate the efficacy of this approach, we assessed the performance of eight deep learning models: long short-term memory (LSTM), a convolutional neural network (CNN), bidirectional LSTM (BiLSTM), CNN Attention, a bidirectional gated recurrent unit (BiGRU) CNN BiLSTM Attention, BiLSTM Attention CNN, CNN BiLSTM Attention, and CNN Attention BiLSTM. These models were used to predict stock prices for Samsung Electronics and Celltrion Healthcare. The CNN Attention BiLSTM model displayed superior performance among these models, with the lowest validation mean absolute error value. In addition, an experiment was conducted using WandB Sweep to determine the optimal hyperparameters for four individual hybrid models. These optimal parameters were then implemented in each model to validate their back-testing rate of return. The CNN Attention BiLSTM hybrid model emerged as the highest-performing model, achieving an approximate rate of return of 5 percent. Overall, this study offers valuable insights into the performance of various deep learning and hybrid models in predicting stock prices. These findings can assist individual investors in selecting appropriate models that align with their investment strategies, thereby increasing their likelihood of success in the stock market.

Keywords

• attention mechanism
• stock forecasting
• deep learning
• technical analysis method
• lightweight automated stock trading system