Manav Codaty’s Blog
Can Beibo Be Your Stock Market Crystal Ball? Predicting Prices with Python

Can Beibo Be Your Stock Market Crystal Ball? Predicting Prices with Python

Manav Codaty's photo
Manav Codaty
·

3 min read

Table of contents

Introduction

The allure of predicting the stock market is undeniable. Imagine knowing when to buy and sell, surfing the waves of volatility to financial freedom. Enter Beibo, a Python library that uses AI models to forecast stock returns. But before you dive in, let's explore what Beibo offers and the realities of stock market predictions.

Downloading Necessary Libraries

  • Copy and paste these command into your desired command line

  • If you are on Mac, you might have to replace ‘pip’ with ‘pip3’

pip install yfinance

pip install plotly

pip install numerize

pip install numpy

Introduction to Beibo

Beibo is a relatively new library, built on the foundation of Empyrial, another stock prediction tool. It leverages various AI models to analyze historical data and predict future returns for individual stocks over a defined period. While the specific models aren't explicitly stated, they likely include techniques like machine learning and statistical analysis.

Getting Started

Before we dive into building predictive models, let's ensure we have the necessary prerequisites installed. You can install Beibo via pip:

pip install beibo

Once installed, we can start by importing the library in our Python script:

from beibo import oracle

Using Beibo

Beibo offers a straightforward interface. You can import it into your Python script, specify the stock symbol and timeframe, and get a predicted return percentage. It also provides visualizations and backtesting capabilities to evaluate past performance.

This is an example:

from beibo import oracle

oracle(
      portfolio=["TSLA", "AAPL", "NVDA", "NFLX"], #stocks you want to predict
      start_date = "2020-01-01", #date from which it will take data to predict
      weights = [0.3, 0.2, 0.3, 0.2], #allocate 30% to TSLA and 20% to AAPL...(equal weighting  by default)
      prediction_days=30 #number of days you want to predict
)

You could take this a step further and allow the user to input their necessary requirements:

from beibo import oracle

symbol = input("Enter stock symbol: ")
        start_date = input("Enter start date (YYYY-MM-DD): ")
        num_days = int(input("Enter number of days to predict: "))
        symbol.upper()
        oracle(
        portfolio = [symbol], #stocks you want to predict
        start_date = start_date, #date from which it will take data to predict
        prediction_days = num_days #number of days you want to predict
        )

The Reality Check

Predicting the stock market is notoriously difficult. While Beibo offers a convenient tool, it's crucial to understand its limitations:

  • Limited Scope: Beibo focuses on short-term predictions (days or weeks). Long-term forecasts are generally unreliable, even with advanced models.

  • Black Box Nature: The specific models and algorithms used are not publicly disclosed. This makes it difficult to assess their accuracy and reliability.

  • Past Performance: Past performance is not indicative of future results. Backtesting results might be misleading, as market conditions constantly change.

  • Disclaimer: Beibo clearly states that its predictions are for informational purposes only and should not be used for financial advice.

Responsible Usage

So, how can you use Beibo responsibly?

  • Consider it a tool, not a guarantee: Don't base your investment decisions solely on Beibo's predictions. Use it alongside other research, fundamental analysis, and risk management strategies.

  • Understand its limitations: Remember, the stock market is complex and unpredictable. No single tool can guarantee success.

  • Manage your risk: Don't invest more than you can afford to lose, and diversify your portfolio to mitigate risk.

Conclusion

Beibo might be an interesting tool for exploring potential stock movements, but it's not a magic crystal ball. Use it with caution, conduct your own research, and remember, responsible investing is key. The stock market is a marathon, not a sprint, so focus on building a sound long-term strategy rather than chasing short-term predictions.

Disclaimer: This blog article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.

Final Words

Written By : Manav Codaty

GitHub

Instagram

dev.to

Python