{"product_id":"stoccomv149a","title":"V.15:11 (497-504): Adding The Human Element To Neural Nets by Jeffrey Owen Katz, Ph.D. with Donna L. McCormick","description":"Adding The Human Element\nTo Neural Nets by Jeffrey Owen Katz, Ph.D., with Donna L. McCormick\u003cbr\u003e\u003cbr\u003eIs it possible to train a neural network to \"see\" the way you\nand I do? These Contributing Writers walk you through their\nresearch in selecting chart-based trading points by hand and\nthen training the neural network to repeat the process.\u003cbr\u003e\u003cbr\u003eIn the November 1996 article \"On\ndeveloping trading systems,\" I\ndemonstrated that neural network\ntechnology no longer works well\nwhen used in a manner employing\nbrute force. To demonstrate, I\ntrained a neural network to directly\npredict price change over\nthe next several bars and achieved\npoor results, as expected. I speculated\nthat the reason neural network technology no longer\nworks well when applied in a crude fashion is because too\nmany traders took the neural net approach and made the\nmarkets efficient relative to such techniques. However, if\napplied in a manner consistent with its capabilities and\ntargeted at unique problems, neural network technology can\nbe highly effective. Let us, then, explore a different approach\nto training a neural network. This time, I will train neural\nnetworks to emulate my subjective recognition of chart\npatterns.\u003cbr\u003e\u003cbr\u003eWhen looking at charts, I often feel that I can intuitively\nidentify good entry points based on visually recognizable\npatterns. One pattern I look for is a pullback in a trend, in\nwhich the market is clearly moving in a given direction before\nit undergoes a small correction - that is, a pullback - before\ncontinuing. Could a neural net be trained to automatically\nperform the same process of recognition that I believe I can\naccomplish by eye? Such an application of the technology\nmight be a more appropriate use of neural networks than\ntrying to train a neural net to directly predict the market.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134078873969,"sku":"\\V15\\C11\\ADDINGT.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_ed6121e8-ce44-4c31-a274-d6491c888d70.jpg?v=1739664948","url":"https:\/\/shop.traders.com\/products\/stoccomv149a","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}