Development of Business Model in the Stock Market using Artificial Intelligence

Abstract

In today’s rapidly evolving landscape, to overcome the criticalness of the synergy between business and information technology, this article is presented with deriving a business model for one of the biggest businesses in the world involving Artificial Intelligence (AI) to help traders or investors. The business model is developed based on mathematical formulas and logic with reward to risk management and emotion management. As the Fibonacci sequence has emerged in nature and science and is used as Fibonacci retracement in the analysis of the stock market (SM), the mathematical models were derived using the Fibonacci numbers. The Python programming: AI tool is used to implement the developed mathematical model for real-time stock data to support popular Algorithmic trading. The validation of the developed model was held with available real-time stock data. Buy/Sell signals, and exit signals with loss or profit with proper risk management, emotion management are beautifully derived as an outcome with around 80% accuracy in the present work. The Python programming implementation for developed mathematical models can be used in Algorithmic trading.