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    Stock Portfolio Trading Bot

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    Soumya Oruganti
    The document describes a proposed stock portfolio trading bot. It would use an LSTM model with sentiment analysis and attention mechanism to predict stock prices and identify profitable trading opportunities. The automated bot would execute these trades to maximize returns. Key advantages over existing bots include reliability testing and a transparent design. Future work could integrate the bot with a broker and rigorously test its predictions and profits in real market conditions.

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    Stock Portfolio Trading Bot

    Uploaded by

    Soumya Oruganti
    44 views30 pages
    The document describes a proposed stock portfolio trading bot. It would use an LSTM model with sentiment analysis and attention mechanism to predict stock prices and identify profitable trading opportunities. The automated bot would execute these trades to maximize returns. Key advantages over existing bots include reliability testing and a transparent design. Future work could integrate the bot with a broker and rigorously test its predictions and profits in real market conditions.

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    The document describes a proposed stock portfolio trading bot. It would use an LSTM model with sentiment analysis and attention mechanism to predict stock prices and identify profitable trading opportunities. The automated bot would execute these trades to maximize returns. Key advantages over existing bots include reliability testing and a transparent design. Future work could integrate the bot with a broker and rigorously test its predictions and profits in real market conditions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    44 views30 pages

    Stock Portfolio Trading Bot

    Uploaded by

    Soumya Oruganti
    The document describes a proposed stock portfolio trading bot. It would use an LSTM model with sentiment analysis and attention mechanism to predict stock prices and identify profitable trading opportunities. The automated bot would execute these trades to maximize returns. Key advantages over existing bots include reliability testing and a transparent design. Future work could integrate the bot with a broker and rigorously test its predictions and profits in real market conditions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 30

    Stock

    Portfolio
    Trading Bot
    What’s the trade secret?
    Stock Portfolio Trading Bot
    BATCH: 3

    INTERNAL GUIDE:
    Mr. N. Venkateswarlu
    Assistant Professor
    Department of CSE The Candlestick Team:

    Lade Srini 20251A05D3


    Lode Harini 20251A05D5
    Soumya Oruganti 20251A05E0
    Rokati Manisha 20251A05E2
    Kavya Sree Natti 20251A05E9
    TABLE OF CONTENTS

    01 02 03
    INTRODUCTION EXISTING SYSTEM PROPOSED SYSTEM
    Introduction, Existing Models, Project Plan, Features of
    Statistics, Stock Market Features of existing proposed bot, Advantages
    bots, Drawbacks of Proposed System

    04 05 06
    METHODOLOGY TECH STACK CONCLUSION
    Flow Diagram, LSTM, Hardware & Software Summary, Future Scope
    Sentiment Analysis, Requirements
    Attention Mechanism
    01 INTRODUCTION
    Introduction,
    Statistics, Stock Market
    CONTEXT

    Chatbots are prevalent. AI ML can be


    extended to more complex applications.

    ● Age of AI, intelligent machines


    ● Most of transactions of day traders
    are not profitable
    ● Help busy individuals in trading
    ● Can serve as a learning mechanism
    or assistant to select stocks
    STATISTICS

    1.2Cr 5L 120Tr$

    Worth of Exchanges Day Traders Market Cap

    In the FY 2022, individual Around 5L day traders, Market capitalisation


    investors 5Cr active investors around the world by
    companies
    INTRODUCTION
    ● The stock market is a public market for trading stocks, which represent
    ownership in publicly traded companies.
    ● The stock market allows companies to raise capital by selling shares
    to investors, and investors to buy and sell shares in the market.
    ● Stock prices go up and down based on supply and demand - if more
    people want to buy a stock than sell it, the price goes up, and vice
    versa.
    ● A portfolio is a collection of financial investments like stocks, bonds,
    funds.
    ● A trading bot is a computer program designed to automate the process
    of buying and selling stocks in a market.
    AIM/OBJECTIVE

    ● To create an intra-day Stock Portfolio


    trading bot which maximises profitable
    transactions.
    ● To make it reliable, efficient and
    user-friendly
    02 EXISTING
    SYSTEM
    Existing Models, Features of existing
    bots, Drawbacks
    DIFFERENT MODELS OF BOTS
    PIONEX HAASONLINER

    Grid Bot, Arbitrage Recreate any trading


    Bot, DCA Bot, and strategy (Grid, DCA,
    t
    Scalper) with Bots
    12 others.

    3 COMMAS BITSGAP

    DCA Bot, HODL Bot,


    Options Bot, GRID High Frequency Algorithm
    Bot, Smart-Trades Trading
    FEATURES OF EXISTING BOTS
    PIONEX
    Pionex is worldʼs 1st exchanges with 12 Free trading bots. Users can automate their trading 24/7
    without always checking the markets

    ● Pionex provides 16 free trading bots for retail investors


    ● The trading fee is the lowest compared to most of the major exchanges
    ● Spot-Futures Arbitrage bot helps retail investors to make passive income
    with low risk. The estimated return for this strategy is 15~50% APR.
    ● Grid Trading Bot allows users to buy low and sell high in a specific price
    👎 rang
    Conse.

    1.No support for custom trading strategies.


    2.No option for “short” position
    FEATURES OF BOTS
    3 COMMAS

    Committed to helping traders reap maximum profit success by minimizing investor risks
    and limiting exposure to losses.

    ● Quickly access bot presets, templates and strategies via the marketplace
    ● Next-level data feeds

    👎 Cons

    1.Detailed interface may feel overwhelming to begin with – need some time to adjust
    2.Hard to measure profitability as it depends on user settings
    DRAWBACKS OF EXISTING SYSTEM

    ● Existing bots almost always do


    not result in profitable
    transactions
    ● Are not rigorously tested and
    not reliable
    ● Too complicated for beginner’s
    use
    ● Over-optimisation
    ● Security threats
    03 PROPOSED
    SYSTEM
    Project Plan, Features of proposed bot,
    Advantages of Proposed System
    PROJECT PLAN

    PHASE 1 PHASE 2
    Build a stock Build a bot and
    market prediction test its
    model performance
    BOT UPDATED
    Identify Updated with
    profitable latest stock data
    transactions

    FEATURES

    MODEL AUTOMATED RELIABLE


    Prediction of Interface with Backtesting of
    Stock Market paper trading model to
    prices site evaluate
    ADVANTAGES OF
    PROPOSED SYSTEM
    Our trading bot addresses the drawbacks
    of existing system:

    ● Sentiment Analysis
    ● LSTM with attention mechanism
    ● Automated & Easy-to-use
    ● Feedback Loop
    ● Transparent about working
    04 METHODOLOGY
    LSTM
    SENTIMENT ANALYSIS
    ATTENTION MECHANISM
    FLOW DIAGRAM
    ALGORITHMNS

    LSTM SENTIMENT ATTENTION


    ANALYSIS MECHANISM
    LSTM
    Long Short Term Memory Networks is an
    advanced RNN (Recurrent Neural Networks), a
    sequential network, that allows information to persist.
    RNNs work-they remember the previous information
    and use it for processing the current input.
    ➢ The shortcoming of RNN is, they can not
    remember Long term dependencies due to
    vanishing gradient.
    ➢ LSTMs are explicitly designed to avoid long-term
    dependency problems.
    Sentiment
    Analysis
    (also known as opinion mining or emotion AI)

    ➢ Sentiment analysis is regarded as the


    key technique for realizing strong
    artificial intelligence and machines that
    can entirely understand human
    languages.
    ➢ A basic task in sentiment analysis is
    classifying the polarity of a given text at
    the document, sentence, or
    feature/aspect level—whether the
    expressed opinion in a document, a
    sentence or an entity feature/aspect is
    positive, negative, or neutral.
    ATTENTION MECHANISM
    Attention is a technique that is
    meant to mimic cognitive attention.

    Goal- is to come up with a probability


    distribution, which says, at each time
    step, how much importance or
    attention should be paid to the input
    words.
    3 sub-parts/ components
    ➢ Encoder
    ➢ Attention
    ➢ Decoder
    05 TECH STACK
    Hardware & Software Requirements
    HARDWARE

    ➢ Intel i5/AMD
    Ryzen 5

    ➢ 16GB RAM

    ➢ NVidia K80 GPU


    in Kaggle kernels
    SOFTWARE
    Kaggle Notebook
    Flask
    REST API
    Python Libraries:
    ● TensorFlow
    ● SciPy
    ● Pandas
    ● Yfinance
    ● requests
    ● TA-Lib
    ● Keras
    06 CONCLUSION
    Summary, Future Scope
    SUMMARY

    The proposed model considers


    both history prices as well as public
    sentiment in a reinforced manner.
    The trading bot uses this model to
    make profitable trades.
    FUTURE SCOPE

    ● Integrate bot with a broker in


    the Stock Market
    ● Test model’s predictions and
    bot’s profits with real market
    conditions
    ● Test the bot rigorously in order
    to prove reliability
    ● Make it a commercial service
    THANKS
    Do you have any questions?
    What’s the trade secret? It’s our bot.
    Batch 3, III CSE-C
    G. Narayanamma Institute of Technology & Science

    Lade Srini 20251A05D3


    Lode Harini 20251A05D5
    Soumya Oruganti 20251A05E0
    Rokati Manisha 20251A05E2
    Kavya Sree Natti 20251A05E9

    Presentation by The Candlestick Team.

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