7
Efficient Market Hypothesis and the Random Walk Hypothesis for short-term trading advantages in this stock market, which is considered as one of the
most important emerging markets in Asia.
1.3. Contribution of the Research
Recently, a number of researchers have explored artificial intelligence techniques such as ANNs to solve financial problems significantly increased,
but most has targeted the United States market Suchira Chaigusin, 2011. There have been limited attempts to research stock markets of developing
economies such as Indonesia. At the beginning of this research, the author find
that there are some previous research using intelligent approach in this market, but there are not many existing research using artificial neural network
technique, specifically, to predict the index movements of the JKSE. The major contributions of this study are to demonstrate and verify the
predictability of stock price index direction using the financial and statistical performances of ANN model. It also benefit to other researchersstudents who
are interested in studying stock market price movement with ANN model. This study is one step along the path towards applying ANN to the IDX in
order to clarify and predict stock performances. Enhancing the use of ANN in financial areas and contributing incrementally to the growing knowledge base
of this financial forecasting field. most important emerging
g ma
ma k
rkets in Asi i
a a
.
1.3. Contribution n
o f the Research
c Rece
ce ntly, a nu
u mb
mbe er of re
e se
se a
ar h
chers s
ha ha
ve ve e
e xp
xp lo
lor red artificial
al intelligence t
techniqu qu
es es
s u
uch as ANN NN
s to
sol ve finan
ci al
al p
p ro
ro blems si
si gn
gnif ific
ic antly in
increased, bu
u t
mo most
s has
s t
targe ted the United
S tates market
Su ch
ch ira
Ch Ch
ai aigu
gu sin, 2
2 01
1. Th
The ere ha
ha ve
been limited attemp ts
to research stock mar ke
kets o o
f f de
dev velopin
ng ec
e ono
om ie
s such as Indone si
a. At th
e beginn
in g of this research
, th
t e au
auth th
or or
find nd
d d
d d
that t
t here are
som e previous
r esea
rc h
usin g
intelligent ap
proa ch i
n n this
s m
m arke
et t,
bu u
t t
there are not ma ny
exi sting
re se
arch usi
ng artificial ne
ur ral netw
work k
te te
ch ch
ni que, specifically,
y, to p
p redict the index movements o
f th e
JK SE
E. .
The major contributions of thi his
s st st
udy are to demonstrate and verif ify
y th th
e pr
p ed ed
ic ic
ta ta
bility y
of stock pr p
ice index direction using g
the financia ia
l l
an an
d d st
st at
atis s
ti ti
cal pe
performances o o
f f
AN AN
N model.
I I
t t al
al so
so be
benefit to o th
th er
er r r
es e
earchersstu tu
de de
nt nts who
are in
in te
te re
re st
st ed
ed in studying stock k market
t price movement w
w it
it h
h AN
AN N
N model. This study is one step along
g the path t towards applying ANN to the IDX in
order to clarify and predict sto o
ck c
perfo o
rmances. Enhancing the use of ANN in financial areas and contributing i
i nc
n r
rementally to the growing knowledge base
8
1.4. Scope of the Research
