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say the least. Processing the inputs to the networks is also a critical factor in this development process (neural newbies should stay away), as is skill in handling exit stops (such expertise can turn a losing system into a winner). Lastly, it is important to have good neural networks and other tools, as well as the knowledge of how to use them appropriately.

Our experiment has illustrated that it is indeed possible, and potentially highly profitable, to develop fully mechanized, rule-based trading systems that make use of advanced neural technology in conjunction with subjective knowledge.

Endnote

1. We have written in greater detail on this topic and recommend you read the following:

"Introduction to Artificial Intelligence" and "Neural Networks in Trading" in Lederman, Jess,

and Klein, Robert A., Virtual Trading, Chicago: Probus Publishing, 1995.

Three articles that appeared in Technical Analysis of Stocks & Commodities: "On Developing

Trading Systems," November, 1996; "A Rule-Based Approach to Trading, Part I," December,

1996; and "A Rule-Based Approach to Trading, Part II," January, 1997.



say the least. Processing the inputs to the networks is also a critical factor in this development process (neural newbies should stay away), as is skill in handling exit stops (such expertise can turn a losing system into a winner). Lastly, it is important to have good neural networks and other tools, as well as the knowledge of how to use them appropriately.

Our experiment has illustrated that it is indeed possible, and potentially highly profitable, to develop fully mechanized, rule-based trading systems that make use of advanced neural technology in conjunction with subjective knowledge.

Endnote

1. We have written in greater detail on this topic and recommend you read the following:

"Introduction to Artificial Intelligence" and "Neural Networks in Trading" in Lederman, Jess,

and Klein, Robert A., Virtual Trading, Chicago: Probus Publishing, 1995.

Three articles that appeared in Technical Analysis of Stocks & Commodities: "On Developing

Trading Systems," November, 1996; "A Rule-Based Approach to Trading, Part I," December,

1996; and "A Rule-Based Approach to Trading, Part II," January, 1997.



say the least. Processing the inputs to the networks is also a critical factor in this development process (neural newbies should stay away), as is skill in handling exit stops (such expertise can turn a losing system into a winner). Lastly, it is important to have good neural networks and other tools, as well as the knowledge of how to use them appropriately.

Our experiment has illustrated that it is indeed possible, and potentially highly profitable, to develop fully mechanized, rule-based trading systems that make use of advanced neural technology in conjunction with subjective knowledge.

Endnote

1. We have written in greater detail on this topic and recommend you read the following:

"Introduction to Artificial Intelligence" and "Neural Networks in Trading" in Lederman, Jess,

and Klein, Robert A., Virtual Trading, Chicago: Probus Publishing, 1995.

Three articles that appeared in Technical Analysis of Stocks & Commodities: "On Developing

Trading Systems," November, 1996; "A Rule-Based Approach to Trading, Part I," December,

1996; and "A Rule-Based Approach to Trading, Part II," January, 1997.



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