Stock market trend predictions using random forests

The ability of investors to make profit depends mainly on their prediction ability. Here we have focused on the long-term stock price trend prediction in order to construct a better long-term stock selection model.

The stock market is chaotic, complex, and dynamic, for which reasons the linear model assumption may be unreasonable, and it is especially important to consider a nonlinear model to achieve a mapping between features and stock returns.

The random forest algorithm is continuously evolved and based on the decision tree algorithm.