Optimizing Hyperparameters for Enhanced LSTM-Based Prediction System Performance

Abstract

This research paper explores the application of deep learning and supervised machine learning algorithms, specifically Long Short-Term Memory (LSTM), for stock market prediction. The study focuses on the closing prices of three companies - Tata Steel, Apple, and Powergrid - using a dataset sourced from Yahoo Finance. Performance evaluation of the LSTM model employed RMSE, MAPE, and accuracy metrics, along with hyperparameter calibration to determine the optimal model parameters. The findings indicate that a single-layer LSTM model outperformed a multilayer LSTM model across all companies and evaluation metrics. Furthermore, a comparison with existing research demonstrated the superiority of the proposed model. The study emphasizes the effectiveness of LSTM models for stock price prediction, underscores the significance of proper hyperparameter tuning for optimal performance, and concludes that a single-layer LSTM model can yield superior results compared to a multilayer model.