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That's a great question.....an example to highlight the issue is pattern
recognition using simple OHLC bars to detect a short-term trading
opportunity.
WIth a neural net, you build the goals (net profit 4 bars in the future for
instance), provide it with the ability to build logic rules from the raw
data input (OHLC, etc). After several passes, the neural net can make
associations of the raw data values that meet the goal pretty quickly. The
more data, the more capable it becomes.
Optimization on the other hand, can get to the same result as the neural
net, but with all of the attendant redundancy and required "brute force"
effort of going thru many, many combinations of logical permutations based
on the raw input. Optimization never "learns"....it just follows the
instructions provided and a final combination of input parameters is
determined optimal.
Bottom line: for complex data, neural nets are best and definitely more
efficient and elegant.
Drawback: building and maintaining the NN.....definitely for specialists
only.
> -----Original Message-----
> From: Tom [mailto:profilic@xxxxxxxx]
> Sent: Wednesday, August 09, 2000 12:33 PM
> To: pierre.orphelin; Schedlbauer, Joseph E.; Omega email list (E-mail)
> Subject: RE: Neural Networks for trading
>
>
> How is a neural net better than or not just the same, as optimising? From
> what I have seen over the years, a neural net trading system is
> very similar
> to an optimisation in its resilience.
>
> Tom
>
> -----Original Message-----
> From: pierre.orphelin [mailto:pierre.orphelin@xxxxxxxxxxxxxx]
> Sent: Monday, August 07, 2000 12:37 PM
> To: Schedlbauer, Joseph E.; Omega email list (E-mail)
> Subject: Re: Neural Networks for trading
>
>
> You may want to check this one:
> Safir-X v 3.0 ( free evaluation version available from the web
> site below).
> Neurofuzzy logic systems.
>
> Also:
> Neuroshell Trader ( Ward system group)
> Biocomp Profit ( Biocomp)
> Both neural networks and GA
>
> Sincerely,
>
> -Pierre Orphelin
> Neurofuzzy Logic tools for TradeStation
> Free evaluation versions and competitive upgrades available
> web: http://www.sirtrade.com
>
>
>
> ----- Message d'origine -----
> De : Schedlbauer, Joseph E. <JoeS@xxxxxxxxxxx>
> : Omega email list (E-mail) <omega-list@xxxxxxxxxx>
> Envoy : lundi 7 aot 2000 17:17
> Objet : Neural Networks for trading
>
>
> > Is anyone aware of any trading programs which use neural networks? The
> only
> > one I've found is Trading Solutions from NeuroDimension.
> >
> > I'm looking for a program specific to trading, not just a general neural
> > network.
> >
> > Thanks in advance.
> >
>
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