EUR/USD Exchange Rate Forecasting incorporating Text Mining Based on Pre-trained Language Models and Deep Learning Methods

Fuente: arXiv
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Hauptverfasser: Ding, Hongcheng, Shi, Xiangyu, Deng, Ruiting, Faroog, Salaar, Dewi, Deshinta Arrova, Abdullah, Shamsul Nahar, Malek, Bahiah A
Format: Preprint
Veröffentlicht: 2024
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author Ding, Hongcheng
Shi, Xiangyu
Deng, Ruiting
Faroog, Salaar
Dewi, Deshinta Arrova
Abdullah, Shamsul Nahar
Malek, Bahiah A
author_facet Ding, Hongcheng
Shi, Xiangyu
Deng, Ruiting
Faroog, Salaar
Dewi, Deshinta Arrova
Abdullah, Shamsul Nahar
Malek, Bahiah A
contents This study introduces a novel approach for EUR/USD exchange rate forecasting that integrates deep learning, textual analysis, and particle swarm optimization (PSO). By incorporating online news and analysis texts as qualitative data, the proposed PSO-LSTM model demonstrates superior performance compared to traditional econometric and machine learning models. The research employs advanced text mining techniques, including sentiment analysis using the RoBERTa-Large model and topic modeling with LDA. Empirical findings underscore the significant advantage of incorporating textual data, with the PSO-LSTM model outperforming benchmark models such as SVM, SVR, ARIMA, and GARCH. Ablation experiments reveal the contribution of each textual data category to the overall forecasting performance. The study highlights the transformative potential of artificial intelligence in finance and paves the way for future research in real-time forecasting and the integration of alternative data sources.
format Preprint
id arxiv_https___arxiv_org_abs_2411_07560
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle EUR/USD Exchange Rate Forecasting incorporating Text Mining Based on Pre-trained Language Models and Deep Learning Methods
Ding, Hongcheng
Shi, Xiangyu
Deng, Ruiting
Faroog, Salaar
Dewi, Deshinta Arrova
Abdullah, Shamsul Nahar
Malek, Bahiah A
Computational Engineering, Finance, and Science
Artificial Intelligence
This study introduces a novel approach for EUR/USD exchange rate forecasting that integrates deep learning, textual analysis, and particle swarm optimization (PSO). By incorporating online news and analysis texts as qualitative data, the proposed PSO-LSTM model demonstrates superior performance compared to traditional econometric and machine learning models. The research employs advanced text mining techniques, including sentiment analysis using the RoBERTa-Large model and topic modeling with LDA. Empirical findings underscore the significant advantage of incorporating textual data, with the PSO-LSTM model outperforming benchmark models such as SVM, SVR, ARIMA, and GARCH. Ablation experiments reveal the contribution of each textual data category to the overall forecasting performance. The study highlights the transformative potential of artificial intelligence in finance and paves the way for future research in real-time forecasting and the integration of alternative data sources.
title EUR/USD Exchange Rate Forecasting incorporating Text Mining Based on Pre-trained Language Models and Deep Learning Methods
topic Computational Engineering, Finance, and Science
Artificial Intelligence
url https://arxiv.org/abs/2411.07560