High Accuracy in Forex Predictions Using the Neural Network Method Based on Particle Swarm Optimization

Abstract

In forex trading, trader has to predict the risk in forex transaction and how to gain or increase the profits based on analysis. The purpose of this study is to predict the value of the USD against the IDR by comparing the neural network method with the neural network method based on Particle Swarm Optimization (PSO) to find out which level of accuracy is higher. This method was chosen bythe author after reading several previous studies using PSO-based Neural Networks showing a higher level of accuracy compared to using Neural Networks without PSO-based. From the results of the study it was found that predictions using Neural Networks strengthened with PSO resulted in very high accuracy.