STOCK PRICE PREDICTION USING THE LONG SHORT-TERM MEMORY METHOD

Stocks are a highly risky investment instrument if not handled correctly. Therefore, accurately predicting stock prices is crucial to supporting better investment decisions. Today, more young people in the current generation know the importance of investing in stocks. Hence, understanding prediction methods early on is essential to reduce potential losses for prospective investors. With accurate prediction methods, the results will be more reliable. The data used consists of daily stock prices of Bank Syariah Indonesia from May 2019 to May 2024, totaling 1,215 data points. The research method employs LSTM (Long Short-Term Memory), which includes data collection, preprocessing, LSTM model formation, and model evaluation. The LSTM model is implemented using the Python programming language, and model evaluation is conducted using the Mean Absolute Percentage Error (MAPE) and Root Mean Squared Error (RMSE) metrics. The results show that the LSTM model can provide accurate predictions with a MAPE error value of only 1.72% and an RMSE of 53.49. This research indicates that the LSTM method is effective in predicting stock prices with an accuracy level of 98.28% and can be one of the bases when starting stock investment.

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Publication Details

Journal
Jurnal Teknik Informatika (Jutif)
Published
2024-12-29
DOI
https://doi.org/10.52436/1.jutif.2024.5.6.2615
Primary Topic
Stock Market Forecasting Methods
Type
article
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article

STOCK PRICE PREDICTION USING THE LONG SHORT-TERM MEMORY METHOD

Mochammad Firman Arif, Muhammad Sahroni, Muhammad Misdram
1 links
Jurnal Teknik Informatika (Jutif)
Stock Market Forecasting Methods
article

STOCK PRICE PREDICTION USING THE LONG SHORT-TERM MEMORY METHOD

Mochammad Firman Arif, Muhammad Sahroni, Muhammad Misdram
article en

Abstract

Stocks are a highly risky investment instrument if not handled correctly. Therefore, accurately predicting stock prices is crucial to supporting better investment decisions. Today, more young people in the current generation know the importance of investing in stocks. Hence, understanding prediction methods early on is essential to reduce potential losses for prospective investors. With accurate prediction methods, the results will be more reliable. The data used consists of daily stock prices of Bank Syariah Indonesia from May 2019 to May 2024, totaling 1,215 data points. The research method employs LSTM (Long Short-Term Memory), which includes data collection, preprocessing, LSTM model formation, and model evaluation. The LSTM model is implemented using the Python programming language, and model evaluation is conducted using the Mean Absolute Percentage Error (MAPE) and Root Mean Squared Error (RMSE) metrics. The results show that the LSTM model can provide accurate predictions with a MAPE error value of only 1.72% and an RMSE of 53.49. This research indicates that the LSTM method is effective in predicting stock prices with an accuracy level of 98.28% and can be one of the bases when starting stock investment.

Jurnal Teknik Informatika (Jutif)Vol. 5(6)
Openalex Percentile: Top 65%
Stock Market Forecasting Methods
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STOCK PRICE PREDICTION USING THE LONG SHORT-TERM MEMORY METHOD — Mochammad Firman Arif, Muhammad Sahroni, et al. · Jurnal Teknik Informatika (Jutif) (2024) | TGRS Research Map | TGRS