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Going fishing with a neural network. (use of neural network technology for predicting and trading the markets) (Trading Techniques )

Neural network technology is increasingly used by traders to predict and trade the markets. An expert explains in simple, non-technical language the basic concepts behind this technology and how it works.

Econometric forecasting is a tough problem. Techniques of varying usefulness and sophistication have been suggested by everyone from respectable academics to con artists. But market movements are not easily predictable because so many factors are involved that analysis is difficult; they are non-linear.

Humans are naturally good at dealing with the non-linear nature of the world. If people could automate on a computer this ability to detect and exploit non-linear ...

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