Combining Machine Learning Classifiers for Stock Trading with Effective Feature Extraction

The prevalence of volatility in the stock market, makes predicting stock prices anything but simple. Before investing, investors perform two kinds of analysis [patel2015predicting]. The first of this is fundamental analysis, where investors look into the value of stocks, the industry performance, economical factors, etc. and decide whether or not to invest. Technical analysis is the second, more advanced, analysis which involves evaluating those stocks through the use of statistics and activity in the current market, such as volume traded and previous price levels [patel2015predicting]. Technical analysts use charts to recognise patterns and try to predict how a stock price will change. Malkiel and Fama's Efficient market hypothesis states that predicting values of stocks considering financial information is possible, because the prices are informationally efficient [malkiel1970efficient].