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Decision Trees on the Foreign Exchange Market

  • Juszczuk Przemyslaw
  • Kozak Jan
  • Trynda Katarzyna
Conference paper
Part of the Smart Innovation, Systems and Technologies book series (SIST, volume 57)

Abstract

In this article we present a novel approach to generate a data set directly from real-world forex market data. The data are transformed into a decision table. Every single object in such a table consists of conditional attributes—in this case values of technical analysis indicators as well as of the decision class (BUY, SELL or WAIT). Our second goal was to test the quality of the classification based on two well-known algorithms used for decision tree construction: the CART algorithm and the C4.5 algorithm. All experiments were conducted on three different currency pairs—with 3 data sets for each pair.

Keywords

Forex market Decision tree CART C4.5 algorithm 

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© Springer International Publishing Switzerland 2016

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Authors and Affiliations

  • Juszczuk Przemyslaw
    • 1
  • Kozak Jan
    • 2
  • Trynda Katarzyna
    • 1
  1. 1.Institute of Computer Science, University of SilesiaSosnowiecPoland
  2. 2.Chair of Knowledge Engineering, Faculty of Informatics and CommunicationUniversity of EconomicsKatowicePoland

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