Neural Networks for Financial Forecasting / Edition 1by Edward Gately, Ed Gately
Pub. Date: 10/28/1995
Neural Networks for Financial Forecasting Neural networks are interconnecting systems set up to function like the neuron patterns of the human brain, learning by a process of trial and error. When applied to the world of finance, neural networks are automated trading systems, based on mapping inputs and outputs for forecasting probable future values. In Neural… See more details below
Neural Networks for Financial Forecasting Neural networks are interconnecting systems set up to function like the neuron patterns of the human brain, learning by a process of trial and error. When applied to the world of finance, neural networks are automated trading systems, based on mapping inputs and outputs for forecasting probable future values. In Neural Networks for Financial Forecasting-the first book to focus on the role of neural networks specifically in price forecasting-traders are provided with a solid foundation that explains how neural nets work, what they can accomplish, and how to construct, use, and apply them for maximum profit. It is written by an acknowledged authority who is, himself, the developer of several successful networks. Beginning with an examination of the structure of a typical network, the author defines what they can and cannot predict. Then, step-by-step, he explains how to design, build, train, and use exactly the kind of network that best suits your forecasting needs, from deciding what is to be predicted and selecting the appropriate inputs, to designing the network architecture and training algorithms to meet your specific goals. Guidelines help you determine when to stop training, and there are tips on what to try if your network won't train, or memorizes rather than generalizes. Also included are discussions on the amount of data you'll need, as well as the preprocessing of data, so that it is in a form usable to the network. Most importantly, you'll learn how to bring all the elements together. Neural Networks for Financial Forecasting enables you to develop a usable, state-of-the-art network from scratch all the way through completion of training. There are spreadsheets and graphs throughout to illustrate key points, and an appendix of valuable information, including neural network software suppliers and related publications. This is comprehensive, targeted information on some of the most important technology in finance today.
Table of Contents
Biological Brain and Artificial Neural Networks (ANN).
Overview of Artificial Neural Networks.
Choosing What Is to Be Predicted and Selecting Appropriate Inputs.
Other Ways to Manipulate Data.
Training and Network Architectures.
Lessons in Starting and Stopping Training.
Developing a Network to Forecast, the S&P 500 Ten Days into the Future.
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Most Helpful Customer Reviews
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Disappointing. Little is said about the theory of neural networks, and the example of a network to forecast the S&P 500 violates one of the basic rules presented earlier in the book: that nets are better at forecasting changes than absolute levels. Basic computer procedures are included, which is superficial to anyone interested in this topic.