Stocks & Commodities V. 24:12 (60-61): What Can Neural Networks Do For You? by Dima Vonko
Neural networks can multiply your profits ó 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 donít think neural networks will magically let you forecast a price by just entering a few technical indicators as inputs. It doesnít work that way.
WHY NEURAL NETWORKS?
Why use neural networks, given that classic technical indicators are already quite popular? Itís 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.