Effective Application of Improved Profit-Mining Algorithm for the Interday Trading Model. (29th January 2014)

• Record Type: Journal Article
• Authors: Hsieh, Yu-Lung; Yang, Don-Lin; Wu, Jungpin
• Other Names: Careglio D. Academic Editor.; Fernández de Vega F. Academic Editor.
• Is Part Of: TheScientificWorldjournal. Volume 2014(2014)
• Publication Date: 2014-01-29
• Subjects: Science -- Periodicals; Technology -- Periodicals; Medicine -- Periodicals; 505
• DOI: 10.1155/2014/874825
• Languages: English
• ISSNs: 2356-6140

Abstract

Abstract : Many real world applications of association rule mining from large databases help users make better decisions. However, they do not work well in financial markets at this time. In addition to a high profit, an investor also looks for a low risk trading with a better rate of winning. The traditional approach of using minimum confidence and support thresholds needs to be changed. Based on an interday model of trading, we proposed effective profit-mining algorithms which provide investors with profit rules including information about profit, risk, and winning rate. Since profit-mining in the financial market is still in its infant stage, it is important to detail the inner working of mining algorithms and illustrate the best way to apply them. In this paper we go into details of our improved profit-mining algorithm and showcase effective applications with experiments using real world trading data. The results show that our approach is practical and effective with good performance for various datasets.