BIRP: Bitcoin Information Retrieval Prediction Model Based on Multimodal Pattern Matching

• URL: http://arxiv.org/abs/2308.08558v1
• Date: Mon, 14 Aug 2023 07:04:23 GMT
• Title: BIRP: Bitcoin Information Retrieval Prediction Model Based on Multimodal Pattern Matching
• Authors: Minsuk Kim, Byungchul Kim, Junyeong Yong, Jeongwoo Park and Gyeongmin Kim
• Abstract summary: We propose an approach of ranking similar PC movements given the CC information. We show that exploiting this as additional features improves the directional prediction capacity of our model. We apply our ranking and directional prediction modeling methodologies on Bitcoin due to its highly volatile prices.
• Score: 2.2945578854972446
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: Financial time series have historically been assumed to be a martingale process under the Random Walk hypothesis. Instead of making investment decisions using the raw prices alone, various multimodal pattern matching algorithms have been developed to help detect subtly hidden repeatable patterns within the financial market. Many of the chart-based pattern matching tools only retrieve similar past chart (PC) patterns given the current chart (CC) pattern, and leaves the entire interpretive and predictive analysis, thus ultimately the final investment decision, to the investors. In this paper, we propose an approach of ranking similar PC movements given the CC information and show that exploiting this as additional features improves the directional prediction capacity of our model. We apply our ranking and directional prediction modeling methodologies on Bitcoin due to its highly volatile prices that make it challenging to predict its future movements.

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