Developing Cryptocurrency Trading Strategy Based on Autoencoder-CNN-GANs Algorithms

Fuente: arXiv
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Main Authors: Hu, Zhuohuan, Yu, Richard, Zhang, Zizhou, Zheng, Haoran, Liu, Qianying, Zhou, Yining
Format: Preprint
Published: 2024
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_version_ 1866916850740232192
author Hu, Zhuohuan
Yu, Richard
Zhang, Zizhou
Zheng, Haoran
Liu, Qianying
Zhou, Yining
author_facet Hu, Zhuohuan
Yu, Richard
Zhang, Zizhou
Zheng, Haoran
Liu, Qianying
Zhou, Yining
contents This paper leverages machine learning algorithms to forecast and analyze financial time series. The process begins with a denoising autoencoder to filter out random noise fluctuations from the main contract price data. Then, one-dimensional convolution reduces the dimensionality of the filtered data and extracts key information. The filtered and dimensionality-reduced price data is fed into a GANs network, and its output serve as input of a fully connected network. Through cross-validation, a model is trained to capture features that precede large price fluctuations. The model predicts the likelihood and direction of significant price changes in real-time price sequences, placing trades at moments of high prediction accuracy. Empirical results demonstrate that using autoencoders and convolution to filter and denoise financial data, combined with GANs, achieves a certain level of predictive performance, validating the capabilities of machine learning algorithms to discover underlying patterns in financial sequences. Keywords - CNN;GANs; Cryptocurrency; Prediction.
format Preprint
id arxiv_https___arxiv_org_abs_2412_18202
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Developing Cryptocurrency Trading Strategy Based on Autoencoder-CNN-GANs Algorithms
Hu, Zhuohuan
Yu, Richard
Zhang, Zizhou
Zheng, Haoran
Liu, Qianying
Zhou, Yining
Machine Learning
Statistical Finance
This paper leverages machine learning algorithms to forecast and analyze financial time series. The process begins with a denoising autoencoder to filter out random noise fluctuations from the main contract price data. Then, one-dimensional convolution reduces the dimensionality of the filtered data and extracts key information. The filtered and dimensionality-reduced price data is fed into a GANs network, and its output serve as input of a fully connected network. Through cross-validation, a model is trained to capture features that precede large price fluctuations. The model predicts the likelihood and direction of significant price changes in real-time price sequences, placing trades at moments of high prediction accuracy. Empirical results demonstrate that using autoencoders and convolution to filter and denoise financial data, combined with GANs, achieves a certain level of predictive performance, validating the capabilities of machine learning algorithms to discover underlying patterns in financial sequences. Keywords - CNN;GANs; Cryptocurrency; Prediction.
title Developing Cryptocurrency Trading Strategy Based on Autoencoder-CNN-GANs Algorithms
topic Machine Learning
Statistical Finance
url https://arxiv.org/abs/2412.18202