This paper studies the possibilities of making prediction of stock market prices using historical data and machine learning algorithms. We evaluate E-THERAPEUTICS PLC prediction models with Modular Neural Network (Emotional Trigger/Responses Analysis) and Polynomial Regression1,2,3,4 and conclude that the LON:ETX stock is predictable in the short/long term. According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Sell LON:ETX stock.

Keywords: LON:ETX, E-THERAPEUTICS PLC, stock forecast, machine learning based prediction, risk rating, buy-sell behaviour, stock analysis, target price analysis, options and futures.

## Key Points

1. Buy, Sell and Hold Signals
2. Can neural networks predict stock market?
3. Market Outlook

## LON:ETX Target Price Prediction Modeling Methodology

Short-term trading is a difficult task due to fluctuating demand and supply in the stock market. These demands and supply are reflected in stock prices. The stock prices may be predicted using technical indicators. Most of the existing literature considered the limited technical indicators to measure short-term prices. We have considered 82 different combinations of technical indicators to predict the stock prices. We consider E-THERAPEUTICS PLC Stock Decision Process with Polynomial Regression where A is the set of discrete actions of LON:ETX 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= $\begin{array}{cccc}{p}_{a1}& {p}_{a2}& \dots & {p}_{1n}\\ & ⋮\\ {p}_{j1}& {p}_{j2}& \dots & {p}_{jn}\\ & ⋮\\ {p}_{k1}& {p}_{k2}& \dots & {p}_{kn}\\ & ⋮\\ {p}_{n1}& {p}_{n2}& \dots & {p}_{nn}\end{array}$ X R(Modular Neural Network (Emotional Trigger/Responses Analysis)) X S(n):→ (n+3 month) $\begin{array}{l}\int {r}^{s}\mathrm{rs}\end{array}$

n:Time series to forecast

p:Price signals of LON:ETX 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?

## LON:ETX Stock Forecast (Buy or Sell) for (n+3 month)

Sample Set: Neural Network
Stock/Index: LON:ETX E-THERAPEUTICS PLC
Time series to forecast n: 20 Oct 2022 for (n+3 month)

According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Sell LON:ETX 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

E-THERAPEUTICS PLC assigned short-term Ba3 & long-term B2 forecasted stock rating. We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) with Polynomial Regression1,2,3,4 and conclude that the LON:ETX stock is predictable in the short/long term. According to price forecasts for (n+3 month) period: The dominant strategy among neural network is to Sell LON:ETX stock.

### Financial State Forecast for LON:ETX Stock Options & Futures

Rating Short-Term Long-Term Senior
Outlook*Ba3B2
Operational Risk 7356
Market Risk8959
Technical Analysis3349
Fundamental Analysis6050
Risk Unsystematic6559

### Prediction Confidence Score

Trust metric by Neural Network: 78 out of 100 with 805 signals.

## References

1. R. Howard and J. Matheson. Risk sensitive Markov decision processes. Management Science, 18(7):356– 369, 1972
2. Clements, M. P. D. F. Hendry (1996), "Intercept corrections and structural change," Journal of Applied Econometrics, 11, 475–494.
3. Hastie T, Tibshirani R, Tibshirani RJ. 2017. Extended comparisons of best subset selection, forward stepwise selection, and the lasso. arXiv:1707.08692 [stat.ME]
4. Kitagawa T, Tetenov A. 2015. Who should be treated? Empirical welfare maximization methods for treatment choice. Tech. Rep., Cent. Microdata Methods Pract., Inst. Fiscal Stud., London
5. Miller A. 2002. Subset Selection in Regression. New York: CRC Press
6. Andrews, D. W. K. (1993), "Tests for parameter instability and structural change with unknown change point," Econometrica, 61, 821–856.
7. Rumelhart DE, Hinton GE, Williams RJ. 1986. Learning representations by back-propagating errors. Nature 323:533–36
Frequently Asked QuestionsQ: What is the prediction methodology for LON:ETX stock?
A: LON:ETX stock prediction methodology: We evaluate the prediction models Modular Neural Network (Emotional Trigger/Responses Analysis) and Polynomial Regression
Q: Is LON:ETX stock a buy or sell?
A: The dominant strategy among neural network is to Sell LON:ETX Stock.
Q: Is E-THERAPEUTICS PLC stock a good investment?
A: The consensus rating for E-THERAPEUTICS PLC is Sell and assigned short-term Ba3 & long-term B2 forecasted stock rating.
Q: What is the consensus rating of LON:ETX stock?
A: The consensus rating for LON:ETX is Sell.
Q: What is the prediction period for LON:ETX stock?
A: The prediction period for LON:ETX is (n+3 month)