News for hackers. Stuff that matters.
Re:Training Rats as Traders by Allocator2008 on Saturday March 14, 2009 @09:16AM (#515835)
A neural network, whether software-based, hardware-based, or wet-ware based (rat in this case, or human for that matter), can only spot patterns in a given set of data which are there. No patterns in the data means no predictability. You can have the coolest, most hyper-intelligent system ever devised, but that cannot see patterns which do not exist. Of course market data has patterns (sell on Friday, for instance), but it is always limited. Generally, I think you could even in principle never get more than 80% accuracy with any kind of neural network, because of the lack of complete patterns in market data, whether we are talking about a rat or a human or a whatever kind of neural network. Which brings me to a second point, since 100% accuracy or anywhere near that is not possible even in principle, applying electric shocks to test subjects when they are wrong is simply cruel and irresponsible.

There are no comments on this comment yet.