This Python code reads Amazon's historical stock prices from 2014 to 2019. I downloaded the CSV file from Yahoo Finance. The chart below shows how well this algorithm predicts stocks prices when compared to actual stock prices. The code was cobbled together from snippets at Analytics Vidhya and Medium.
# importing libraries
import pandas as pd
import numpy as np
from datetime import date, datetime
import calendar
#importing required libraries
from sklearn.preprocessing import MinMaxScaler
from keras.models import Sequential
from keras.layers import Dense, Dropout, LSTM
# reading the data df = pd.read_csv('amzn2.csv')
# looking at the first five rows of the data
print('\n Original data:')
print(df.head())
print('\n Shape of original data:')
print(df.shape)
# setting the index as date
df['Date'] = pd.to_datetime(df.Date,format='%Y-%m-%d')
df.index = df['Date']
#creating dataframe
data = df.sort_index(ascending=True, axis=0)
new_data = pd.DataFrame(index=range(0,len(df)),columns=['Date', 'Close'])
#populate new data frame
for i in range(0,len(data)):
new_data['Date'][i] = data['Date'][i]
new_data['Close'][i] = data['Close'][i]
#setting index
new_data.index = new_data.Date
new_data.drop('Date', axis=1, inplace=True)
#creating train and test sets
dataset = new_data.values
#the csv file has 1260 records
train = dataset[0:630,:]
valid = dataset[630:,:]
#converting dataset into x_train and y_train
scaler = MinMaxScaler(feature_range=(0, 1))
scaled_data = scaler.fit_transform(dataset)
x_train, y_train = [], []
for i in range(60,len(train)):
x_train.append(scaled_data[i-60:i,0])
y_train.append(scaled_data[i,0])
x_train, y_train = np.array(x_train), np.array(y_train)
x_train = np.reshape(x_train, (x_train.shape[0],x_train.shape[1],1))
# create and fit the LSTM network
model = Sequential()
model.add(LSTM(units=50, return_sequences=True, input_shape=(x_train.shape[1],1)))
model.add(LSTM(units=50))
model.add(Dense(1))
model.compile(loss='mean_squared_error', optimizer='adam')
model.fit(x_train, y_train, epochs=1, batch_size=1, verbose=2)
#predicting 246 values, using past 60 from the train data
inputs = new_data[len(new_data) - len(valid) - 60:].values
inputs = inputs.reshape(-1,1)
inputs = scaler.transform(inputs)
X_test = []
for i in range(60,inputs.shape[0]):
X_test.append(inputs[i-60:i,0])
X_test = np.array(X_test)
X_test = np.reshape(X_test, (X_test.shape[0],X_test.shape[1],1))
closing_price = model.predict(X_test)
closing_price = scaler.inverse_transform(closing_price)
rms=np.sqrt(np.mean(np.power((valid-closing_price),2)))
print('\n Root Mean Square Deviation:')
print(rms)
#for plotting
#plot
import matplotlib.pyplot as plt
train = new_data[:630]
valid = new_data[630:]
valid['Predictions'] = closing_price
plt.plot(train['Close'])
plt.plot(valid[['Close','Predictions']])
plt.show()
