Neural Nets - A tool for the 90's Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Neural Nets - A tool for the 90's

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LastShadow who wrote (746)	4/6/2000 9:43:00 AM
From: Optim	Read Replies (1) of 871

Hi Lastshadow, Just wanted to say that I can already see that our methods of using neural networks are very different. I am gaining a new appreciation for your methods, as it has never occurred to me to build a network for general sector use that can be tailored for individual issues with some adjustment. I did model 3 stocks as a custom index once, but perhaps I didn't pursue it far enough. I can see now why price shocks may not be as much an issue for you as a basket of issue will be less susceptible to them. Where you really surprised me is with the 2-3 month training period. Is this enough data for the networks to stabilize? I have been using a minimum of 18 months data with only 2-3 inputs or else I overfit the training period and kill my out of sample results. Our approach is probably different because the package I do most of my work in, BioComp Profit, uses a GA to build it's networks. It is very difficult to reproduce results as the GA takes a new path (inputs, structure, etc.) every time it is started. Profit is also very limited in building trading strategies. I've often imported Profit's neural signal to Metastock to build better trading strategies. For stops I've found the Kase DevStop method to work very well as it adjusts for recent volatility. This is one of the areas a trading strategy can make up for deficiencies in the neural network. I agree that modeling for consistency is better that modeling for the occasional 'pops'. I hope you don't regret offering your advice on building a neural network. I know you're a busy man, so if I can help in any way let me know. Optim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next