A Quantitative Neural Network Model (Qnnm) for Stock Trading Decisions

Trading activities are based on technical analysis, market sentiment (asymmetric information, rumours, noise trading) and imitative behavoiur. This leads to unjustified biasness in decision making. To remove such subjectivity, this paper suggests a neural network model for the investors to decide whether buy or sell the shares. The model consists two wings - one, based on technical analysis and the other, on fundamental analysis. The integral part of this model is the existence of a hidden layer between the input layer and output layer. To remain away from the subjectivity, this model does not consider the behavioural factors in modeling.

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