Chapter

Data Mining and Knowledge Management

Volume 3327 of the series Lecture Notes in Computer Science pp 243-253

A Neural Network and Web-Based Decision Support System for Forex Forecasting and Trading

  • K. K. LaiAffiliated withDepartment of Management Sciences, City University of Hong Kong
  • , Lean YuAffiliated withInstitute of Systems Science, Academy of Mathematics and Systems Sciences, Chinese Academy of SciencesSchool of Management, Graduate School of Chinese Academy of Sciences, Chinese Academy of Sciences
  • , Shouyang WangAffiliated withInstitute of Systems Science, Academy of Mathematics and Systems Sciences, Chinese Academy of SciencesInstitute of Policy and Planning Sciences, University of Tsukuba

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Abstract

This study presents a neural network & web-based decision support system (DSS) for foreign exchange (forex) forecasting and trading decision, which is adaptable to the needs of financial organizations and individual investors. In this study, we integrate the back-propagation neural network (BPNN)- based forex rolling forecasting system to accurately predict the change in direction of daily exchange rates, and the Web-based forex trading decision support system to obtain forecasting data and provide some investment decision suggestions for financial practitioners. This research reveals the structure of the DSS by the description of an integrated framework, and meantime we find that the DSS is integrated, user-oriented by its implementation, and practical applications reveal that this DSS demonstrates very high forecasting accuracy and its trading recommendations are reliable.