AN FULLY AUTOMATED AI BASED TRADING SYSTEM |
Author(s): |
SYED VAHITH.S |
Keywords: |
Algorithmic trading, Demand forecasting, Automated buy and sell stocks, Portfolio management. |
Abstract |
Generating reliable and meaningful product demand predictions is an open challenge in the industrial environment.. Demand forecasting is still an active avenue of research since it significantly affects business profitability because of uncertainties related to demand predictability, high product variety, and supply fluctuation. This paper deals with a practical real-life case study of a leading international company. Particularly, we investigate the demand forecasting for the industrial products .The proposed implementation was how the historical demand data could be utilized to forecast future demand and how the automatic buy and selling of the stocks performed and it also able to do portfolio management. The historical demand information was used to develop several autoregressive integrated moving average (ARIMA) models by using Box–Jenkins time series procedure and the adequate model was selected according to four performance criteria: Akaike criterion, Schwarz Bayesian criterion, maximum likelihood, and standard error. The selected model corresponded to the ARIMA (1, 0, 1) and it was validated by another historical demand information under the same conditions. The results obtained prove that the model could be utilized to model and forecast the future demand in this food manufacturing. These results will provide to managers of this manufacturing reliable guidelines in making decisions. |
Other Details |
Paper ID: IJSARTV Published in: Volume : 9, Issue : 3 Publication Date: 3/14/2023 |
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