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Market Edge

AI-powered stock forecasting with walk-forward backtesting and Claude-generated plain-English explanations.

Python License: MIT Streamlit App

Demo

Features

  • Candlestick charts, fundamentals, and live news per ticker
  • LightGBM regressor predicting next-day log returns (no target leakage)
  • Walk-forward time-series cross-validation — real out-of-sample metrics
  • Multi-step iterative forecast with proper lag-window shifting
  • Confidence bands on forecast chart (±1σ from CV RMSE)
  • Claude Sonnet explains the forecast in plain English: which signals support it, which work against it
  • Long/flat strategy backtested vs buy-and-hold with transaction costs
  • Full metrics: Sharpe, max drawdown, win rate, annualized return
  • Dark AIBC theme — monospace, teal accent

How it works

Data (Tiingo primary / yfinance fallback)
  └─► Feature engineering
        RSI · SMA ratios · lag log-returns · cross-asset (SPY ratio, VXX ratio, log-spreads)
  └─► LightGBM Regressor
        Target: next-day log return  ← no target leakage
        Training: walk-forward TimeSeriesSplit (5 folds)
  └─► Multi-step forecast (n days)
        Iterative — lag window shifts each step
  └─► Price reconstruction
        last_price × exp(cumsum(predicted_log_returns))
  └─► Claude Sonnet explanation
        Reads features snapshot + forecast → 3-4 sentence plain-English summary
  └─► Strategy backtest
        Long when predicted_return > threshold · costs in bps per trade
        Equity curve + metrics vs buy-and-hold

Tech stack

Layer Tech
UI Streamlit
Model LightGBM
Features pandas, numpy
Data Tiingo API / yfinance
Explanation Claude Sonnet (Anthropic API)
Viz Plotly
Tests pytest

Local setup

git clone https://github.com/HeTron/market-edge.git
cd market-edge
python -m venv .venv && source .venv/bin/activate
pip install -r requirements.txt

cp .env.example .env
# Edit .env — add ANTHROPIC_API_KEY and optionally TIINGO_API_KEY

streamlit run streamlit_app.py

Open http://localhost:8501.

Tests:

pytest tests/

Environment variables

Variable Required Notes
ANTHROPIC_API_KEY Yes (for Claude explanations) Predict page degrades gracefully without it
TIINGO_API_KEY No Falls back to yfinance automatically

Disclaimer

This tool is for educational and research purposes only. It is not financial advice. Past model performance does not guarantee future results. Do not make investment decisions based on this output.

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AI-powered stock forecasting with walk-forward backtesting and Claude-generated explanations

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