Implementing Machine Learning for Finance: A Systematic Approach to Predictive Risk and Performance Analysis for Investment Portfolios

© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2021

T. C. NokeriImplementing Machine Learning for Financehttps://doi.org/10.1007/978-1-4842-7110-0_7

7. Stock Market Simulation

Tshepo Chris Nokeri¹  

(1)

Pretoria, South Africa

 

The stock exchange market typically responds to socio-economic conditions. The active participation of key market players undoubtedly creates liquidity in the market. There are other factors that influence variations in the market besides the large transactions that key market makers make. For instance, markets react to news of social events, economic events, natural disasters, pandemics, etc. In certain conditions, the effects of those events drive price movement drastically. Systematic ...