<p>Attempt-wise, yes. All big players (e.g. J.P. Morgan) in the stock market who do automatic trading utilize reinforcement learning systems, which may contain components for short-term prediction.</p>
<p>But as @miguelmorin commented, if a simple algorithm ever exists, it would be so widely adopted until any gain from it disappear - that is, totally wrong predictions.</p>
<p>AFAIK, in long run, the only winners in short-term trading are those who can hire dozens of experts to build reinforcement systems, which are hosted on multi-million hardware, listening to thousands of market signals coming in from dark fibers 24/7, plus algorithms which can digest and place orders in less than 1 second (perhaps faster than our eyes seeing a price and our brain perceiving it). So, good luck!</p>

CC BY-SA 4.0
2023-03-15T09:55:51.847Z
2023-03-15T09:55:51.847Z
lpounng
<p>One simple way of predicating short-term stock price is to simply take the average price of the previous few days.</p>
<p>I wonder if there is some AI model/methods which can do better than this using only previous prices as input?</p>

CC BY-SA 4.0
2023-03-14T08:13:16.860Z
If it existed, it would probably be so widely used that any prediction, say a price rise in 5 minutes, would push up the price so that price increase disappears. See the [efficient markets hypothesis](https://en.wikipedia.org/wiki/Efficient_markets_hypothesis). So any such AI model will be subjective and carry risk.
emonigma
CC BY-SA 4.0
2023-03-15T10:32:16.883Z
Check the follow up! https://ai.stackexchange.com/questions/39594/are-there-public-examples-of-ai-models-that-predicted-short-term-price-well?noredirect=1&lq=1
Rexcirus
<time-series><forecasting>
Is there any AI model that predicts short-term stock price well?
LeafGlowPath
# Is there any AI model that predicts short-term stock price well?

(Asked by: username_0 on 2023-03-13)

One simple way of predicating short-term stock price is to simply take the average price of the previous few days.

I wonder if there is some AI model/methods which can do better than this using only previous prices as input?

**Tags:** time-series, forecasting

> **Comments:**
> **username_1**: If it existed, it would probably be so widely used that any prediction, say a price rise in 5 minutes, would push up the price so that price increase disappears. See the [efficient markets hypothesis](https://en.wikipedia.org/wiki/Efficient_markets_hypothesis). So any such AI model will be subjective and carry risk.  
> **username_2**: Check the follow up! https://ai.stackexchange.com/questions/39594/are-there-public-examples-of-ai-models-that-predicted-short-term-price-well?noredirect=1&lq=1  

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## 1 answers

### Answer by username_3 on 2023-03-15. Score: 0 | Accepted answer

Attempt-wise, yes. All big players (e.g. J.P. Morgan) in the stock market who do automatic trading utilize reinforcement learning systems, which may contain components for short-term prediction.

But as @miguelmorin commented, if a simple algorithm ever exists, it would be so widely adopted until any gain from it disappear - that is, totally wrong predictions.

AFAIK, in long run, the only winners in short-term trading are those who can hire dozens of experts to build reinforcement systems, which are hosted on multi-million hardware, listening to thousands of market signals coming in from dark fibers 24/7, plus algorithms which can digest and place orders in less than 1 second (perhaps faster than our eyes seeing a price and our brain perceiving it). So, good luck!


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