Financial Modeling Ashay Verma. The Problem The average person, not in finance, does not have time to analyze the market. He is prone to get hurt by events.

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Presentation transcript:

Financial Modeling Ashay Verma

The Problem The average person, not in finance, does not have time to analyze the market. He is prone to get hurt by events such as the most recent recession.

Problem

Goal Detect and track anomalies in the market (where correction is imminent) such as the housing bubble. Understand human behavior and how it is reflected in stock prices especially since human reactions to economic situation probably has remained constant

Retrieval of Information Historical Stock Prices Earnings Macroeconomic data such as retail sales

Display

Indicators Candlesticks

Indicators Moving averages

Plans Create an accurate forecasting model

Plans 5/15/11 – Make the model more accurate by involving other variables such as related stock prices, international markets, or other macroeconomic data 5/22/11 – Implement basic AI capabilities – keep track of probabilities as mentioned above in a separate file so the program gets smarter as more data is read 6/5/11 – Depending on how behind… build an alert system where an alert is txted/ ed when a stock is ideal to buy/short (from a list of stocks given by user).

Questions?