Review of the Application of Algorithms in Stock Prediction

Ningkai Wang

2025

Abstract

This paper discusses the current research status of stock prediction using algorithms. Firstly, the basic concepts of stocks and the importance of stock prediction were introduced. Then, the application principles of classification algorithms and regression algorithms in stock prediction are summarized, and the research on machine learning and deep learning algorithms in predicting stock trends is analyzed. The article points out that classification algorithms perform outstandingly in predicting the types of stock price fluctuations, while regression algorithms have significant advantages in stock price prediction. However, the current research still has some limitations, such as the risk of model overfitting, the difficulty in quantifying market emergencies, and ignoring macroeconomic or sentiment factors, etc. Therefore, the article proposes future research directions, including exploring the combination of deep learning algorithms and traditional machine learning algorithms, and integrating theories of financial psychology, etc. All in all, this paper comprehensively reviews the research progress of stock prediction using algorithms and points out the direction of future research, providing valuable references for investors and researchers.

Paper Citation

in Harvard Style

Wang N. (2025). Review of the Application of Algorithms in Stock Prediction. In Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI; ISBN 978-989-758-792-4, SciTePress, pages 191-195. DOI: 10.5220/0014324700004718

in Bibtex Style

@conference{emiti25,
author={Ningkai Wang},
title={Review of the Application of Algorithms in Stock Prediction},
booktitle={Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI},
year={2025},
pages={191-195},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0014324700004718},
isbn={978-989-758-792-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI
TI - Review of the Application of Algorithms in Stock Prediction
SN - 978-989-758-792-4
AU - Wang N.
PY - 2025
SP - 191
EP - 195
DO - 10.5220/0014324700004718
PB - SciTePress