Utilization of soft computing techniques for constructing reliable decision support systems for dealing stocks

The use of soft computing techniques such as NNs, GAs, etc. in the financial market has become one of the most exciting and promising application areas. We propose a decision support system (DSS) for dealing in the TOPIX (Tokyo Stock Exchange Prices Indexes), which utilizes neural networks and genetic algorithms. In the proposed system, the neural network is utilized in order to make a forecast of the TOPIX four weeks in the future. The genetic algorithm is utilized in order to find an effective way of dealing. Several computer simulations have been carried out in order to compare the proposed DSS with the other approaches such as the DSS using traditional technical analysis and a buy-and-hold method. These simulations confirm the effectiveness of the proposed DSS