What are the most successful trading algorithms? (WLK Stock Forecast)

As stock data is characterized by highly noisy and non-stationary, stock price prediction is regarded as a knotty problem. In this paper, we propose new two-stage ensemble models by combining empirical mode decomposition (EMD) (or variational mode decomposition (VMD)), extreme learning machine (ELM) and improved harmony search (IHS) algorithm for stock price prediction, which are respectively named EMD–ELM–IHS and VMD–ELM–IHS. We evaluate Westlake Chemical prediction models with Reinforcement Machine Learning (ML) and Polynomial Regression1,2,3,4 and conclude that the WLK stock is predictable in the short/long term. According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Buy WLK stock.


Keywords: WLK, Westlake Chemical, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

Key Points

  1. What is neural prediction?
  2. Decision Making
  3. Can machine learning predict?

WLK Target Price Prediction Modeling Methodology

The stock market is very volatile and non-stationary and generates huge volumes of data in every second. In this article, the existing machine learning algorithms are analyzed for stock market forecasting and also a new pattern-finding algorithm for forecasting stock trend is developed. Three approaches can be used to solve the problem: fundamental analysis, technical analysis, and the machine learning. Experimental analysis done in this article shows that the machine learning could be useful for investors to make profitable decisions. We consider Westlake Chemical Stock Decision Process with Polynomial Regression where A is the set of discrete actions of WLK stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.1,2,3,4


F(Polynomial Regression)5,6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Reinforcement Machine Learning (ML)) X S(n):→ (n+6 month) e x rx

n:Time series to forecast

p:Price signals of WLK stock

j:Nash equilibria

k:Dominated move

a:Best response for target price

 

For further technical information as per how our model work we invite you to visit the article below: 

How do AC Investment Research machine learning (predictive) algorithms actually work?

WLK Stock Forecast (Buy or Sell) for (n+6 month)

Sample Set: Neural Network
Stock/Index: WLK Westlake Chemical
Time series to forecast n: 09 Sep 2022 for (n+6 month)

According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Buy WLK stock.

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Yellow to Green): *Technical Analysis%


Conclusions

Westlake Chemical assigned short-term B3 & long-term Ba3 forecasted stock rating. We evaluate the prediction models Reinforcement Machine Learning (ML) with Polynomial Regression1,2,3,4 and conclude that the WLK stock is predictable in the short/long term. According to price forecasts for (n+6 month) period: The dominant strategy among neural network is to Buy WLK stock.

Financial State Forecast for WLK Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*B3Ba3
Operational Risk 4989
Market Risk3033
Technical Analysis7872
Fundamental Analysis4543
Risk Unsystematic3679

Prediction Confidence Score

Trust metric by Neural Network: 74 out of 100 with 610 signals.

References

  1. Ashley, R. (1988), "On the relative worth of recent macroeconomic forecasts," International Journal of Forecasting, 4, 363–376.
  2. Jiang N, Li L. 2016. Doubly robust off-policy value evaluation for reinforcement learning. In Proceedings of the 33rd International Conference on Machine Learning, pp. 652–61. La Jolla, CA: Int. Mach. Learn. Soc.
  3. Alpaydin E. 2009. Introduction to Machine Learning. Cambridge, MA: MIT Press
  4. Meinshausen N. 2007. Relaxed lasso. Comput. Stat. Data Anal. 52:374–93
  5. Hartigan JA, Wong MA. 1979. Algorithm as 136: a k-means clustering algorithm. J. R. Stat. Soc. Ser. C 28:100–8
  6. J. Baxter and P. Bartlett. Infinite-horizon policy-gradient estimation. Journal of Artificial Intelligence Re- search, 15:319–350, 2001.
  7. Bessler, D. A. R. A. Babula, (1987), "Forecasting wheat exports: Do exchange rates matter?" Journal of Business and Economic Statistics, 5, 397–406.
Frequently Asked QuestionsQ: What is the prediction methodology for WLK stock?
A: WLK stock prediction methodology: We evaluate the prediction models Reinforcement Machine Learning (ML) and Polynomial Regression
Q: Is WLK stock a buy or sell?
A: The dominant strategy among neural network is to Buy WLK Stock.
Q: Is Westlake Chemical stock a good investment?
A: The consensus rating for Westlake Chemical is Buy and assigned short-term B3 & long-term Ba3 forecasted stock rating.
Q: What is the consensus rating of WLK stock?
A: The consensus rating for WLK is Buy.
Q: What is the prediction period for WLK stock?
A: The prediction period for WLK is (n+6 month)

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