V.2:6 (189-196): Forecasting With Maximum Entropy by Jack K. Hutson and Anthony W. Warren, Ph.D.
Product Description
Forecasting With Maximum Entropy
by Jack K. Hutson and Anthony W. Warren, Ph.D.
The most obvious ability that stock or commodity buyers and sellers wish for is foresight. If there was a method or technique that we could use to predict what tomorrow will bring in the market, all our problems would be solved. There are people everywhere that believe one prediction method or another has some validity in forecasting market behavior. I will not claim to know a method that is better than everyone else's nor claim that our method is better than all others. But, I will say, "This forecasting method is statistically consistent with past price history"!
Forecasting based on past price data can be very enlightening or can be disappointing. There is always enough history to draw some conclusion about probable future stock price activity. The best of forecasts will have some degree of uncertainty. Maximum Entropy Method forecasts, with our computer implementation, are as good as can be expected, based soley on past price information. The amount of data used to forecast must be chosen with some care and common sense.
The most obvious ability that stock or commodity buyers and sellers wish for is foresight. If there was a method or technique that we could use to predict what tomorrow will bring in the market, all our problems would be solved. There are people everywhere that believe one prediction method or another has some validity in forecasting market behavior. I will not claim to know a method that is better than everyone else's nor claim that our method is better than all others. But, I will say, "This forecasting method is statistically consistent with past price history"!
Forecasting based on past price data can be very enlightening or can be disappointing. There is always enough history to draw some conclusion about probable future stock price activity. The best of forecasts will have some degree of uncertainty. Maximum Entropy Method forecasts, with our computer implementation, are as good as can be expected, based soley on past price information. The amount of data used to forecast must be chosen with some care and common sense.
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $299.99! |
| Click Here to Order |