networks

Neural Networks

by Olivier Becquet Olivier Becquet No Comments

Learn how to trade by making use of Neural Networks

Recently there has been a lot of buzz around Neural Networks in the trading markets. Packed with extremely powerful computing ability and bandwidth neural networks have the potential to allow systems used in trading evolve and learn in real time. Let’s take a brief look at neural networks.

Definition of Neural Network

It is simply defined as a computation model that imitates the way the human brain functions by computing extremely large amounts of data entered into the network to predict the possible outcome.

In technical terms, neural networks used in trading are usually data analysis protocols containing a very large amount of processing modules all intertwined through estimated probabilities.

It can be used in machine learning and pattern recognition which is naturally adaptive. When used in the right way, neutral networks learn by examining the results from previous steps.

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