Comparing A Hybridization of Fuzzy Inference System and Particle Swarm Optimization Algorithm with Deep Learning to Predict Stock Prices

Predicting stock prices by data analysts have created a great business opportunity for a wide range of investors in the stock markets. But the fact is difficulte, because there are many affective economic factors in the stock markets that they are too dynamic and complex. In this paper, two models are designed and implemented to identify the complex relationship between 10 economic factors on the stock prices of companies operating in the Tehran stock market. First, a Mamdani Fuzzy Inference System (MFIS) is designed that the fuzzy rules set of its inference engine is found by the Particle Swarm Optimization Algorithm (PSO). Then a Deep Learning model consisting of 26 neurons is designed wiht 5 hidden layers. The designed models are implemented to predict the stock prices of nine companies operating on the Tehran Stock Exchange. The experimental results show that the designed deep learning model can obtain better results than the hybridization of MFIS-PSO, the neural network and SVM, although the interperative ability of the obtained patterns, more consistent behavior with much less variance, as well as higher convergence speed than other models can be mentioned as significant competitive advantages of the MFIS-PSO model.