A Stock Prediction Method Based on Deep Reinforcement Learning and Sentiment Analysis

Featured Application: The model proposed in this paper can help stock investors to get high returns on newly listed stocks. Most previous stock investing methods were unable to predict newly listed stocks because they did not have historical data on newly listed stocks. In this paper, we use the Q-learning algorithm based on a convolutional neural network and add sentiment analysis to establish a prediction method for Chinese stock investment tasks. There are 118 companies that are ranked in the Chinese top 150 list for two consecutive years in both 2022 and 2023. We collected all comments under the stock bar of these 118 stocks for each day from 1 January 2022 to 1 July 2024, totaling nearly 10 million comments. There are 90 stocks left after the preprocessing of 118 stocks. We use these 90 stocks as the dataset. The stock’s closing price, volume, and comment text data are fed together to the agent, and the trained agent outputs investment behaviors that maximize future returns. We apply the trained model to two test sets that are completely different from the training set and compare it to several other methods. Our proposed method called SADQN-S obtains results of 1.1229 and 1.1054 on the two test sets. SADQN-S obtained higher final total assets than the other methods on both test sets. This shows that our model can help stock investors earn high returns on newly listed stocks. © 2024 by the authors.