Prediction of Best Index Suitable for Investor’s by Using DRSMLA Method


Journal of Management Research

ISSN: 0972-5814 Online ISSN: 0974-455X

Prediction of Best Index Suitable for Investor’s by Using DRSMLA Method


Ch. Madhavi Latha and K. Siva Nageswara Rao


Abstract

Every investor wants to gain high returns and dividends in stock market. This is possible only when there are methods to get knowledge as to invest in stocks that will be risk free. Towards this direction the methods existing in the literature are ID3 Decision trees, neural networks, statistics discriminant analysis and rough set theory. But there are some drawbacks in the above methods. To overcome them we propose a method “Dynamic Rough set using machine learning algorithms” (DRSMLA) to predict best indices for long term, medium term and short term investors. We use Dynamic Rough Set Theory (DRST) for preprocessing the data and divide the data into required time slots. Next the features selected by DRST will be sent to Support Vector Machine (SVM) model to learn and test respectively. The model is tested on Bombay Stock Exchange (BSE) and the results reveal accuracy is increased and time complexity is decreased over the existing methods.


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