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Developing and assessing an intelligent forex rolling forecasting and trading decision support system for online e‐service
Author(s) -
Yu Lean,
Wang Shouyang,
Lai Kin Keung,
Huang Wayne W.
Publication year - 2007
Publication title -
international journal of intelligent systems
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.291
H-Index - 87
eISSN - 1098-111X
pISSN - 0884-8173
DOI - 10.1002/int.20210
Subject(s) - foreign exchange market , computer science , decision support system , intelligent decision support system , foreign exchange , artificial intelligence , trading strategy , service (business) , business , finance , economics , marketing , monetary economics
Abstract An effective foreign exchange (forex) trading decision is usually dependent on effective forex forecasting. In this study, an intelligent system framework integrating forex forecasting and trading decision is first proposed. Based on this framework, an advanced intelligent decision support system (DSS) incorporating a back‐propagation neural network (BPNN)‐based forex forecasting subsystem and Web‐based forex trading decision support subsystem is developed, which has been used to predict the directional change of daily forex rates and provide intelligent online decision support for financial institutions and individual investors. This article describes the forex forecasting and trading decision method, the system architecture, main functions, and operation of the developed DSS system. A comparative study is conducted between our developed system and others commonly used in order to assess the overall performance of the developed system. The assessment results show that our developed DSS outperforms some commonly used forex forecasting and trading decision systems and can provide intelligent e‐service for forex traders to make useful trading decisions in the forex market. © 2007 Wiley Periodicals, Inc. Int J Int Syst 22: 475–499, 2007.