Options Trading using Artificial Neural Network and Algorithmic Trading

Predicting stock market movements is a well-known problem of interest. Financial markets employ a staggering amount of sophisticated and complex technologies for getting efficient results while trading. Algorithmic trading (AT) is one of the major steps in this direction as it is gaining wide acceptance in the global market. There are various Computational intelligence models that have produced a significant number of results over a period of time. Some of them are neuro fuzzy models, systems based on genetic algorithm and support vector machines (SVM). Every day a huge volume of data is produced from Dotex International Limited which is also known as NSE Data Analytics Ltd. This data contains all the factors which more or less directly affect the movement of the market. A stock market is a complicated system which attract a lot of people everyday but there have been many instances where people have lost their entire life savings within a day specially while trading in options. Hence, it requires a lot of knowledge and one should be able to control his emotions while trading. Usually, newbies consider stock market as a money vending machine and jump into it directly without even knowing the basics of it. Every one knows that one who can predict the momentum of market is the real king of this game and thus we have made an attempt for predicting the trend of the stock market. Two models are built, one for daily forecast and one for monthly forecast.