Hybrid Recommender System with Random Forest Regression for Intelligent Algorithmic Trading in Financial Markets

Mwezimupya Sichula*, Esther**, Rani J.***
*-*** School of Computer Science & Technology, DMI St. Eugene University, Lusaka, Zambia.
Periodicity:July - December'2025

Abstract

This study introduces an adaptive arbitrage trading framework that integrates an intelligent recommender system with Quantum Random Forest Regression and quantum signal generation to enhance decision-making in multi-currency and financial markets. While recommender systems are commonly applied in domains such as e-commerce and multimedia personalization, their adoption in algorithmic trading remains limited. Building on the quantum arbitrage architecture developed in this work featuring Qiskit-based qubit measurements, probabilistic signal generation, SQLite trade logging, and a real-time Streamlit interface the proposed system unifies quantum-inspired computation with machine learning to recommend optimal arbitrage opportunities, strategy configurations, and asset allocations tailored to each trader's style. The Quantum Random Forest Regression model forms the analytical core, using quantum- enhanced feature sampling and nonlinear pattern extraction to interpret high-dimensional market data, volatility changes, economic indicators, sentiment streams, and historical trade performance captured through the application. Unlike traditional trading algorithms that generate static buy/sell signals, this approach continuously delivers dynamic predictive values, probabilistic confidence levels, and personalized strategy recommendations that adapt to evolving market conditions. By combining quantum measurement randomness, model-driven forecasting, and a recommender architecture, the framework demonstrates how quantum computing principles and AI-driven inference can significantly improve predictive accuracy, risk control, and execution efficiency in arbitrage trading representing a major step toward next-generation intelligent financial systems.

Keywords

Quantum Simulation, Random Forest Regression, Artificial Intelligence, Financial Markets.

How to Cite this Article?

Sichula, M., Esther, and Rani, J. (2025). Hybrid Recommender System with Random Forest Regression for Intelligent Algorithmic Trading in Financial Markets. International Journal of Business Intelligent, 14(2), 15-30.

References

[2]. Felizardo, L. K., Paiva, F. C. L., Costa, A. H. R., & Del-Moral-Hernandez, E. (2022). Reinforcement learning applied to trading systems: a survey. arXiv preprint arXiv:2212.06064.
[5]. Roy, S. K., Rana, R., Chandra, M. G., Kumar, N., & Nambiar, M. (2025). Toward Quantum Enabled Solutions for Real-Time Currency Arbitrage in Financial Markets. arXiv preprint arXiv:2509.09289.
[6]. Shenoy, K. S., Sheth, D. Y., Behera, B. K., & Panigrahi, P. K. (2020). Demonstration of a measurement-based adaptation protocol with quantum reinforcement learning on the IBM Q experience platform. Quantum Information Processing, 19(5), 161.
If you have access to this article please login to view the article or kindly login to purchase the article

Purchase Instant Access

Single Article

North Americas,UK,
Middle East,Europe
India Rest of world
USD EUR INR USD-ROW
Pdf 35 35 200 35
Online 15 15 200 35
Pdf & Online 35 35 400 35

Options for accessing this content:
  • If you would like institutional access to this content, please recommend the title to your librarian.
    Library Recommendation Form
  • If you already have i-manager's user account: Login above and proceed to purchase the article.
  • New Users: Please register, then proceed to purchase the article.