The problem Trading Compass solves

The stock market is a complex entity that is influenced by various factors, including economic indicators, geopolitical events, and company-specific news. This makes it difficult for investors to predict the future performance of a stock or the market as a whole.

Team Trading Compass can be a valuable tool for investors and traders who are looking to make informed decisions about their investments. By providing insights into the future performance of a particular stock or the overall market, stock market predictions can help investors identify trends, manage risk, and make more profitable trades.

One of the primary problems that stock market future prediction can solve is the uncertainty that investors face when making investment decisions. This uncertainty arises due to the complexity of the stock market and the various factors that influence its performance. Stock market predictions based on historical data, statistical models, and machine learning algorithms can help investors gain a better understanding of the underlying trends and drivers of the market.

Stock market future prediction can help investors identify undervalued or overvalued stocks. This is important because when investors are looking to make a trade, they need to determine whether a stock is currently priced appropriately or whether it is overpriced or underpriced relative to its intrinsic value. By analyzing trends and patterns in the stock's historical performance, as well as the performance of similar companies and industries, stock market future prediction can help investors determine whether a stock is currently undervalued or overvalued.

Challenges we ran into

Building a stock market future prediction model using data from Yahoo Finance can be a complex and challenging task. While there are many benefits to using historical data to predict future market trends, there are also several potential problems and limitations that must be considered when building such a model.

One of the primary challenges when building a stock market future prediction model is the quality and reliability of the data. While Yahoo Finance provides a wealth of data on individual stocks and the broader market, this data can be subject to errors, inconsistencies, and missing values. This can make it difficult to create accurate and reliable predictive models that can be used to make informed investment decisions.

Another potential problem when building a stock market future prediction model is the inherent unpredictability of the stock market. While historical data can provide valuable insights into the performance of individual stocks and the market as a whole, it is important to recognize that the stock market is subject to a wide range of external factors that can influence its performance. These factors can include economic indicators, geopolitical events, and company-specific news, among others.

As a result, stock market future prediction models must be able to account for and adapt to changes in the market, in order to provide accurate and reliable predictions over time. This requires the use of sophisticated algorithms and statistical models that can analyze large amounts of data and identify patterns and trends that may not be immediately apparent to the human eye.

Another potential problem when building a stock market future prediction model is overfitting. Overfitting occurs when a model is too complex and is trained to fit the data too closely, leading to poor performance when applied to new data.