AgentApplication in the Stock Market

Abstract

The stock market is a key market in any economy and financial forecastsuch as stock price prediction is a field receiving much attention bothfor research studies and commercial applications. Stock marketforecasters are keen on developing a successful approach to predictstock prices even more accurately since there is motivation of gainingmassive profits from trading shares by using well defined attractivestrategies. This research project develops a stock price prediction modelbuilt using JADE environment. It is based on multi-agent architecturein order to harness the power of agents. This provides investors withpredicted trend of share price by incorporating various correlatedfactors like economic, political, company outlook to traditional priceover time, demand and supply in order to accurately forecast the stockprice trend and thus, provide a buying or selling signal to traders. TheTrend is determined by incorporating text processing in agents fromlive news sources. The model was tested and has proved to be a key                                                         tool for stockbrokers, novice traders and investment bankers since itis automated and more robust than traditional methods of priceprediction.Keywords: Agents, Stock Market, Prediction, Model, Text processing.