Improving Financial Forecasting Accuracy Through Swarm Optimization-Enhanced Deep Learning Models

Abstract

Financial forecasting is a crucial factor for decision-making in numerous fields, it demands very accurate predictive models. Traditional methods, like Convolutional Neural Networks (CNN), Recurrent Neural Networks (RNN), and Gradient Boosting Machines (GBM), display suitable performance however have proven not totally efficient in complex high-dimensional financial data. This paper introduces a new approach combining swarm-based algorithms and deep learning architectures to improve predicative accuracy in financial forecasting. The proposed method relies on elite data preprocessing algorithms to optimize the learning process and prevent overfitting. By experimenting with large variety of dataset, the optimized model was able to achieve accuracy of 98% out running traditional models such as CNN (80%), RNN (83%), and GBM (95.6%). Furthermore, the model performed a good precision-recall trade-off, strengthening it applicability to real world work of predictive tasks, such as stock price prediction and market trend analysis. Through optimizations of essential hyperparameters by means of swarm intelligence, the framework handles the non-linear dependencies as well as volatility of financial data. The study shows high robustness and adaptability of the proposed concept provides solutions to the shortcomings of conventional financial forecasting tools. This study furthers the state of intelligent financial analytics proposing a byword framework for additional studies fostering deep learning and optimisation technologies together. The results align with the potential application of swarm-optimizer models for overcoming the limitation of predictive reliability of financial forecasting systems and future research in machine learning driven economic modelling and risk analysis.