Forecasting Stock Exchange Data using Group Method of Data Handling Neural Network Approach

Abstract

Article history: Received 4 March 2021 Revised 29 March 2021 Accepted 4 April 2021 Published online 17 August 2021 The increasing uncertainty of the natural world has motivated computer scientists to seek out the best approach to technological problems. Nature-inspired problemsolving approaches include meta-heuristic methods that are focused on evolutionary computation and swarm intelligence. One of these problems significantly impacting information is forecasting exchange index, which is a serious concern with the growth and decline of stock as there are many reports on loss of financial resources or profitability. When the exchange includes an extensive set of diverse stock, particular concepts and mechanisms for physical security, network security, encryption, and permissions should guarantee and predict its future needs. This study aimed to show it is efficient to use the group method of data handling (GMDH)-type neural networks and their application for the classification of numerical results. Such modeling serves to display the precision of GMDH-type neural networks. Following the US withdrawal from the Joint Comprehensive Plan of Action in April 2018, the behavior of the stock exchange data stream and commend algorithms has not been able to predict correctly and fit in the network satisfactorily. This paper demonstrated that Group Method Data Handling is most likely to improve inductive self-organizing approaches for addressing realistic severe problems such as the Iranian financial market crisis. A new trajectory would be used to verify the consistency of the obtained equations hence the models validity. This is an open access article under the CC BY-SA license (https://creativecommons.org/licenses/by-sa/4.0/).