Probabilistic Planning for Multiple Stocks of Financial Markets

Abstract

In the financial market the decision on when buying or selling stocks is fundamental in order to achieve profit. There are several techniques that can be used to help investors in order to make a decision. One of those is the employment of technical analysis that consists of chart studies concerning the behaviour of stock prices. In this paper we describe our approach for this problem of decision making, which is cast as a planning problem in the presence of uncertainties. We propose the use of Partially Observable Markov Decision Process (POMDP) for the task of planning the negotiation of stocks on the financial market. The main and desired contribution consist of exploring this type of planning using multiple stocks. The stocks are selected from correlation calculations. The use of multiple stocks provided better results, when compared to other researched strategies.