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Journal : Intechno Journal : Information Technology Journal

The Effectiveness of Dropout Layers in LSTM Architecture for Reducing Overfitting in Sony Stock Prediction Saputra, Roni; Kurnia, Dian Ade; Wijaya, Yudhistira Arie
Intechno Journal : Information Technology Journal Vol. 7 No. 2 (2025): December
Publisher : Universitas Amikom Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24076/intechnojournal.2025v7i2.2369

Abstract

This study investigates the effectiveness of dropout layers in reducing overfitting within Long Short-Term Memory (LSTM) neural networks for Sony stock price prediction. Financial time series forecasting presents significant challenges due to market volatility and noise, often leading to models that overfit historical data while failing to generalize to unseen market conditions. We implemented two LSTM models: one without dropout layers and another with dropout layers (rate=0.2) applied after each LSTM layer. Using historical Sony stock data from 2015-2025, we evaluated both models using Root Mean Square Error (RMSE), Mean Absolute Error (MAE), and Mean Absolute Percentage Error (MAPE) metrics. The model with dropout demonstrated superior performance on testing data, achieving RMSE of 0.5971, MAE of 0.4411, and MAPE of 2.1502%, compared to the model without dropout which obtained RMSE of 0.7124, MAE of 0.5636, and MAPE of 2.6684%. Furthermore, the dropout model exhibited significantly reduced overfitting, with smaller performance gaps between training and testing datasets across all metrics, particularly in MAPE where the difference approached zero (0.0509%). This research provides empirical evidence that dropout regularization effectively enhances LSTM model generalization for stock prediction, offering practical value for developing more reliable financial forecasting models. Future research could explore optimal dropout rates for different market conditions and investigate combinations of dropout with other regularization techniques.
Co-Authors Abrar Bayan, Athaullah Ade Irma Purnama Sari Ade Irma Purnamasari Adi Hermawan Adiyanto, Alfian Adjie Setyadj, Mochammad Agni, Vega Putra Dwi Ahmad Faqih AKBAR, MUHAMAD DENI Alfirda Sofyan, Zahra Aliya Anisa Rahma Alya Fadia Amelia, Astri An-naziz Safaat, Wafik Andi Ardiansyah Andriyani, Wini Andriyanti, Rina Anggara, Doni Anjar Permadi Aprianto, Wili Arif Firmansyah, Aditiya ASEP SAEFUDDIN Asmana, Asmana Ayura Yufita Azhar, Alwan Cintia Putri Prasetia Dadang Sudrajat Danar Dana, Raditya Darma Irawan, Bobi Darussalam, Luthvi Nurfauzi Denni Pratama Dermawan, Hibrizi Dzaky Dian Ade Kurnia Dian Ade Kurnia Edi Tohidi Edi Wahyudin Falih, Alfi Rizqi Falih FANDI ACHMAD Fauzan, Muhamad Nur Fianita Rusadi Fianita Rusadi Firmansyach, Wildan Attariq Hadi Wicaksana, Arya Hajijin Amri Hamonangan, Ryan Hayati, Umi Hegarmanah Muhabatin Herman Hermawan, Adi Hidayat, Hilpad Hidayat, Zaids Syarif Ibnu Ubaedila Ikhwan Fahruddin, Yusuf Inawati, Windi Irfan Ali Irfan Ali, Irfan Irma Agustina Irma Purnamasari, Ade Jaelani Sidik Jayawarsa, A.A. Ketut Jurnal Konsera Khoeri, Yajid Komala, Wulan Kurnia, Dian Ade Kurniawan , Rudi Kusmiyaty, Agesty Laela Laela Leli Oktaviani Lukmanul Hakim Manzis, Zian Martanto Martanto . Martanto Martanto Maryam, Beby Masjunedi, Masjunedi maulana faz'rin, rama Maulana, Tedy Mifta Almaripat Mita Amelia Moh Nurdayat Dayat Muhamad Basysyar , Fadhil MUHAMAD DENI AKBAR Muhamad Nur Fauzan Muhammad Aditya Rabbani Adit Nabila, Aynun Nana Suarna Nashir, Mukhtar Nining Rahaningsih Nisa Dieanwati Nuris Nisa Dienwati Nuris Novita Safitri Nur Amalia, Yustika Nurazijah, Wulan Nurdiawa, Odi Nurholipah, Titin Nurrahman, Rizki Odi Nurdiawa Odi Nurdiawan Pebriyanto, Ramdhan Pratama, Denni Prihartono, Willy Restu Normalasari Rinaldi Dikananda, Arif Rini Astuti Rini Astuti Rini Astuti Riri Narasati Rizal Rizal Roni Saputra, Roni Rubangiya Rubangiya Rudi Kurniawan Rudi Kurniawan Rudi Kurniawan Saeful Anwar Saeful Anwar, Saeful Satria Turangga Septian Nugraha, Titan Septiani Gumilar, Tia Shifa Dwi Oktaviani Siti Sopiyah Suarna, Nana Sulaeman, Muhammad Suteja Syach Putra, Yanuar Tati Suprapti Taufik Hidayat Tegar Lazuardi, Muhammad Thomas Agam Tiana Dewi Tohidi, Edi Tri Anelia Trian Nurmansyah Triswanto, Triswanto Tuti Hartati Tuti Hartati Tuti Hartati Wahyudi Wahyudi Wangi Nur Qibti, Intan Wartumi Wartumi Willy Prihartono Winayah, Winayah Windy Astuti Yudis Firmansyah yulani, Yulani - Yulia, Yuli