Neural Networks in Investments Essay -- Computers Technology Investing

Neural Networks in InvestmentsI. generalisationInvestment managers often find themselves overwhelmed with the astronomic amount of data obtained from the monetary markets. Most of the data available is numeric and noisy in nature, fashioning the decision-making process harder. These decisions usually rely on the integration of statistical measures that get to compress much of the data and qualitative depictions such as graphs and metre charts with news events and other pertinent information. Investment decisions usually involve non-linear relationships among the various components of the data. Computers in general, are very adept at dealing with large amounts of numeric information. However, some algorithms are crucial in analyzing and combining different information that can impact security prices. Artificial Intelligence found methods uses clever algorithms and rules of thumb (heuristics) in the decision-making process. Neural Network and expert systems applications induct been successfully deployed in the domain of Finance, and in the area of investment management.This attainup discusses the basics and the theory behind nervous net incomes and provides an introduction to an application area of neural networks in the domain of Finance. The application areas of Neural Networks discussed in the idea are corporate finance, financial institutions, and the professional investor. The purpose of the second newsprint will be to discuss the specifics of each of these applications.II. INTRODUCTIONNeural network computing is an information processing method that was developed from research to make computers that could imitate the way people learned. The field initially grew from 1930s ideas closely how biological systems like the human brain works... ...in of finance is essential for throw out development.V. REFERENCES 1. Deboeck Guido J., Trading on the Edge Neural, Genetic, and Fuzzy Systems for Chaotic Financial Markets, seat Wiley & Sons Inc., 1994. 2. Trippi Robert R., Lee Jae K., State-of-the-Art Portfolio Selection Using Knowledge Based Systems to call forth Investment Performance, Probus Publishing Company, 1992. 3. Refenes Paul, Neural Networks in the Capital Markets, John Wiley & Sons Inc., 1995. 4. legal proceeding of the Second International Conference on Artificial Intelligence Applications on Wall Street, April 19-22 1993, New York City. 5. Neural Network Resources on the World ample Web, http//www.med-web.com/nnres/ 6. Neural Network Toolbox, http//www.mathworks.com/products/neuralnet/ 7. Neural Network WWW References, http//ftp.funet.fi/pub/sci/neural/www/www-catalogue.html