EDDIE Beats the Bookies

摘要

Investment involves the maximisation of return on one's investment whilst minimising risk. Good forecasting, which often requires expert knowledge, can help to reduce risk. In this paper, we propose a genetic programming-based system, EDDIE (Evolutionary Dynamic Data Investment Evaluator), as a forecasting tool. Genetic programming is inspired by evolution theory, and has Been demonstrated to be successful in other areas. EDDIE interacts with the users and generates Decision trees, which can also be seen as rule sets. We argue that EDDIE is suitable for forecasting Because apart from utilising the power of genetic programming to efficiently search the space of Decision trees, it allows expert knowledge to be channelled into forecasting, and it generates rules Which can easily be understood and verified.