Assessing Manual Dataset Creation For Xauusd Market Prediction : A Comparative Study Logistic Regression And Decision Tree Model

Abstract

This study aims to develop a simplified dataset for more effective market prediction, focusing on the Forex trading of XAUUSD (Gold/USD). The dataset was gathered from the TradingView platform, covering the period from March 4, 2023, to December 21, 2023. The data collection method involved intensive observation of daily and weekly charts, utilizing Daily and Weekly Moving Average (MA) indicators and the concept of breakout. The analysis focused on measuring the distance between the Daily MA at the beginning and end of the period (start and stop), and utilizing this data for entry strategy in the following three time periods. The trading strategy adopted involves the simultaneous use of Buy and Sell orders, with a Stop Loss (SL) to Take Profit (TP) ratio of 1:2. TP was adjusted to accommodate aggressive price movements, while SL remained constant. The collected data was meticulously recorded and stored in Excel format for further analysis.With the prepared dataset, this research applies two AI models, Logistic Regression and Decision Tree, to predict the best trading decision – Buy or Sell. The study aims not only to create a useful dataset for market prediction but also to compare the effectiveness of two different AI methods in the context of Forex trading of XAUUSD. The results are expected to provide insights into which model is more accurate and efficient in analyzing and predicting market trends, with practical implications for traders and market analysts

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