The world's most boring TV station. Or a way to set up a computer system that structurally matches the set up of neural system of the human brain.
In an ANN, as they are sometimes called, there are simplified units, known as nodes. These nodes are connected to each other to form a network. The structure resembles the way neurons are arranged inside the brain.
The benefit of the ANN is its flexibility, which allows the system to mimic a simple form of what we might call learning. Given individual examples of something, the system can compare similarities and differences in order to come up with criteria for future comparison.
In terms of finance, artificial neural networks can contribute to the modeling used for quantitative trading. Past market data can be fed into the network, which can then identify possible trading triggers. These flags can be used in algorithms to make future decisions.
Artificial neural networks are used by traders to make predictions. They deploy algorithms to detect patterns and meaningful changes in the markets. That’s a really important thing if you consider that this was once done by a whole bunch of nerdy math gurus sitting around a table, running calculations in long-hand form. Imagine how long that would take in today’s connected global marketplace.
Artificial neural networks are changing the world of trading because they’re linking market data together so granularly that essentially all markets are becoming ‘one’ (not like U2’s song). They can help to predict daily closing prices of stocks, patterns that stocks will take, and even currency valuation changes. Way better than the crystal ball they used to use.
Related or Semi-related Video
Finance: What is a Dual Currency Bond?33 Views
Finance allah shmoop what is a dual currency bond Well
a currency duel would be way cooler to bonds One
dusty road in the wild west a saloon a gal
and a gun plan retired or called are paid whatever
they call bonds when they're dead Anyway a duel currency
bond is a bond where the principal and the interest
payments are made in different currencies like here's a bond
whose principal is paid off in u s dollars But
its interest is paid in euros and yeah whatever currency
being used for interest payments is called the base currency
Well why would you the investor of want one of
these things Well dual currency bonds or subject to exchange
rate risk In other words you're making a gamble not
just on an investment but on which way the exchange
rate will bounce That is if you own something it's
highly exposed two euros while then you're kind of making
a bet that the relative to the dollar the euro
zehr gonna appreciate mohr like the government's printing less of
them You have less inflation whatever because then if that
repayment currency appreciates well boom you're more in the money
Than just the interest you collected And if that currency
doesn't appreciate well there's always bank robbery is a last 00:01:21.189 --> [endTime] resort dual currency dueling currencies No
Up Next
What is a Chartist? A chartist is a trader and/or analyst who relies on technical analysis and charts in order to make decisions for trading the ma...