Stock Prediction Project Documentation
Stock Prediction Project Documentation
Date: [Date]
1. Introduction
Purpose: The objective of this project is to predict stock prices using historical data and
machine learning techniques.
Scope: The project focuses on analyzing stock market data and predicting future stock
prices based on patterns observed in the historical data.
Motivation: Stock prediction is crucial for investors and analysts looking to gain insights
into market trends and make informed decisions. This project aims to contribute to better
decision-making by providing more accurate predictions.
2. Technologies Used
Programming Language(s): Python
3. Data Collection
Source of Data: Yahoo Finance API, Alpha Vantage API
Data Description: Historical stock prices, trading volume, and other relevant market data
were collected.
Data Preprocessing: Data cleaning and normalization steps were taken to handle missing
values and format the data appropriately for model training.
4. Methodology
Model Selection: Models such as Linear Regression, Long Short-Term Memory (LSTM)
neural networks, and Random Forests were evaluated.
Feature Selection: The model considers features such as historical prices, technical
indicators, and market trends.
Training and Testing: The dataset was split into training and testing sets. Model
performance was evaluated using accuracy metrics and cross-validation techniques.
5. Implementation
Algorithms: Linear Regression, LSTM, and Random Forest models were implemented due to
their ability to handle time series data and generate predictions.
Model Training: The models were trained using historical stock data. Hyperparameter
tuning and cross-validation were performed to optimize performance.
Testing and Validation: The models were tested on unseen data, and their performance was
validated using metrics such as Mean Squared Error (MSE) and R-squared.
6. Results
Predictions: The stock price predictions are provided for selected stocks, and the
performance is evaluated based on historical data comparisons.
Accuracy Metrics: Accuracy metrics such as Mean Absolute Error (MAE) and Root Mean
Squared Error (RMSE) were used to evaluate model performance.
Visualization: Graphs and charts depicting the predicted vs actual stock prices are included
to visualize the results.
Possible Improvements: Future work could involve the use of more advanced models,
longer data history, and incorporating external factors such as news sentiment.
8. Conclusion
Summary of Findings: The models showed varying degrees of success, with LSTM
performing well on short-term predictions, while Random Forest struggled with volatile
stocks.
Future Work: Future iterations of the project could explore deeper models, more feature
engineering, and other data sources such as social media sentiment analysis.
9. References
Citations for data sources, research papers, and other references used during the project.