Data Mining on the NIFTY

August 27, 2008 by
Filed under: data mining in finance, NIFTY, stock market 

I’m just back from a business trip in India (Delhi). I went there to meet MarkeTopper, a company that uses data mining for stock market predictions. My first impression was the seriousness of the company. They have an excellent internal structure and their employees are very qualified. Unlike me, they’re not making direct predictions on stock market increase or decrease in the future. Indeed, they use data mining algorithms to build their strategies and portfolios.

I can’t enter into details about the algorithms they use and how they use it for obvious confidentiality purposes. The meeting was very interesting for several reasons. One of them was the way they approched the problem of using data mining algorithms in the stock market. It is completely different from my personnal approach. I always thought of using these algorithms to predict a value (close price) or a class (increase/decrease) representing price evolution five, ten or twenty days ahead and then applying this process in the past to backtest the system. Their approach is to use the same kind of algorithms to tune a strategy and then backtest it to see its results in the past. Very interesting!

MarkeTopper website

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Comments

4 Comments on Data Mining on the NIFTY

  1. SBL on Tue, 9th Dec 2008 7:34 am
  2. I am very excited to hear about data mining algorithms…
    Regards,
    SBL

  3. steve on Wed, 10th Jun 2009 12:00 pm
  4. Thank you for an informative article.

  5. Sandro Saitta on Wed, 10th Jun 2009 1:26 pm
  6. You’re welcome steve! Feel free to tell me your experience in the financial data mining domain.

  7. Mortgage Guy on Fri, 12th Jun 2009 12:14 pm
  8. Good Post man

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