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

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To: Robin who wrote (75)4/19/1998 9:47:00 PM
From: tulsainvest001  Read Replies (1) of 871
 
Hi Robin and welcome to the thread. As far as background goes it really depends on the product (or approach) you will be using. My favorite tool so far is NeuroShell Trader from Ward Systems
(see neuroshell.com for more info). One nice thing about NST is that it requires no programming at all. The hardest part of the process seems to be finding the best indicators for prediction of a particuliar market (or stock), finding a good market to predict (some are more random or have lots of new influences that make it hard to predict), and finding a good output to predict. It comes with 600 indicators out of the box.

It is certainly no holy grail and at best the results give a statistically-better forecast (ie - not 100% certainty). There maybe better competing products but this one works well for my needs (ie - it's simple to use ;-) ). It does need to be combined with a good trading plan otherwise for successful trading (ie - good money management, position management, and market selection).

Anyway, designing a neural-network engine could be interesting. Remember that after you get it built then you still have to go through the above processes to make it useful. There are quite a few links from the wardsystems.com that will eventually lead to academic and technical sites with a lot of info on rolling your own. I don't think C++ is a requirement but could be helpful (if nothing else so you can read examples code snippets). I really don't have enough free time anymore to work on these kinds of interests so I looked for a pre-built model.

Another approach might be to purchase the engine and link to it from your own program via DLL, OLE, or some other interface. I think there are several good options in these areas from several vendors (including Ward Systems). Finally, there are some engines that contain Excel links so you can use them from within MS-Excel.

Hope this helps and good luck with your quest!
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