and-rewsmith / and-rewsmith/RNN_LSTM_Stock_Model

Model won't predict for volatile stock prices

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good first issue
Dominant language
Python
Stars
17
Forks
8
PR merge metrics
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Description

This is not a high priority problem as it will happen for 1/20 stocks.

I suspect that this is because the LSTM can't handle values greater than 1.

This is a problem as prices in a timestep are processed as percent difference relative to the first price in the timestep. If the percent difference goes above 1 then the prediction fails.

My theory of fixing it is to multiply all prices in a timestep by .01 to increase the range of volatility the model will accept.

I'll try this out eventually but if anyone wants to try it before me feel free to try it and submit a PR (with some form of proof of it working) and I'll look at it.

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Research direction

Locate the timestep percent-difference preprocessing and the LSTM input path, then reproduce the failure with a stock whose relative change exceeds 1. Compare the current scaling theory against the model's behavior and provide proof that volatile-stock prediction succeeds without breaking existing cases.

Written by the indexing model from the issue text.

Assessment

Tech stack
python
Domain
fintech-quant, machine-learning
Issue type
Bug
Difficulty
4/5
Estimated time
3-5 days
Activity status
Stale
Clarity
Mostly clear
Newbie friendliness
35/100

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