Answers.Body: <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>
  
Answers.ContentLicense: CC BY-SA 4.0
Answers.CreationDate: 2023-03-15T09:55:51.847Z
Answers.LastActivityDate: 2023-03-15T09:55:51.847Z
Answers.UserDisplayName: lpounng
Body: <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>
  
Comments.ContentLicense: CC BY-SA 4.0
Comments.CreationDate: 2023-03-14T08:13:16.860Z
Comments.Text: 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.
Comments.UserDisplayName: emonigma
Comments.ContentLicense: CC BY-SA 4.0
Comments.CreationDate: 2023-03-15T10:32:16.883Z
Comments.Text: 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
Comments.UserDisplayName: Rexcirus
Tags: <time-series><forecasting>
Title: Is there any AI model that predicts short-term stock price well?
UserDisplayName: LeafGlowPath
ThreadText: # 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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