The Application Of Geneitc Algorithm-wavelet Neural Network In Capital Market

In recent20years, China’s financial market has developed a lot due to the opening of Shanghai Stock Exchange and Shenzhen Stock Exchange. Financial industries such as Bank, insurance and stock market all have their own supervision systems. At the same time, all the securities analysts are looking for measures to analyze the capital market more efficiently.As mathematics is an essential tool in finance, it is playing an increasingly important role in securities analysis. At the same time, neural network has been more and more important in the field. Wavelet neural network based on BP algorithm has a great learning ability and fault tolerance. It’s able to process different kinds of information in parallel by adjusting the weights between the nodes. Genetic algorithm and quantum genetic algorithm can get good results in the approximation of the function and computing of the network weights.This paper use the plate of Chinese stock market and individual stocks as the research objects and try to find the daily trend of the stock market and individual stocks using the wavelet neural network based on genetic algorithm and quantum genetic algorithm.While using the wavelet neural network, we can enter the historical data to simulate the future data. Comparing the simulated data with historical data, the errors between them were satisfactory. The effectiveness of wavelet neural network was proved.