Building an Expert System based on Data Mining

Abstract

A novel framework for predicting stock trends and making financial trading, decisions based on a combination of Data and Text Mining techniques. The prediction models of the proposed system extract data in text content of time-stamped web documents in addition to traditional numerical time series data, which is also available from the Web. The financial trading system based on model predictions uses three different trading strategies. In this work, our system is simulated and evaluated on real-world series of news stories and stocks data using Decision Tree Induction Algorithm.  Performance is the predictive accuracy of the induced models and, more importantly, the profitability of each trading strategy using these predictions.