NEURAL NETWORKS
Using Neural Nets To Analyze The Markets
What Can Neural Networks Do For You?
by Dima Vonko
Neural networks can multiply your profits -- if you know
how to use them.
Neural networks can be created to generate
profits. You may think you need vast computer facilities and a team of
doctoral candidates toiling away, but what you really need is an optimal
vision of neural networks and an idea of what you can achieve with them.
Artificial intelligence technologies, and neural networks that stem
from them, can multiply your profits. The major challenge lies in how to
develop a network or group of networks to assist you in your trading decisions
without spending more time and money than you can commit.
To make money with neural networks, you should know what to expect from
them, how to use them, and to what ends. But don't think neural networks
will magically let you forecast a price by just entering a few technical
indicators as inputs. It doesn't work that way.
WHY NEURAL NETWORKS?
Why use neural networks, given that classic technical indicators are
already quite popular? It's a question of whether you want to acquire a
new vision of the market and combine it with new toolsets to obtain results
that will put you ahead of other traders.
Nonlinear methods and artificial intelligence are the next step in technical
analysis. And similar to how traders who first used technical indicators
got an edge over other traders, those who combine nonlinear methods with
classic approaches and money management techniques will be able to make
better trading decisions.
