ARTICLE SYNOPSIS ...Artificial Intelligence And Market Analysis by Mark B. Fishman, Dean S. Barr and Walter J. Loick Markets are chaotic and their randomness is real but intermittent; we can approach the development of trading systems with that assumption. We can also assume that predictable intervals of non-randomness occur between periods of chaos, making market behavior recognizable enough to be exploited. Two forms of technology have been notably successful in the development of dynamic trading systems: expert systems and, more recently, neural networks. EXPERT SYSTEMS An expert system is simply a set of r...
ARTICLE SYNOPSIS ...Can neural networks aid traders? By Mark B. Fishman, Dean S. Barr and Walter J. Loick Neural networks are the newest form of artificial intelligence technology to make its way into market analysis. Neural networks, also referred to as neural nets, mimic the human brain's most powerful ability, that of pattern recognition. The neural net can make a decision or a prediction by drawing on an inventory of patterns previously learned, seeking the one most relevant to the current situation. What distinguishes neural nets, moreover, from ""classical"" AI paradigms such as that of rule-based systems ...