This study describes the structure and function of a new financial modeling technique, namely, the Artificial Neutral Network (ANN) in predicting financial markets’ behavior. With the advancement of the computer technology to date, ANN allows us to imitate human reasoning and thought processes in identifying the optimal trading strategies in the financial markets. The paper identifies the theory and steps involved in performing ANN and Generic Alogorithm in financial markets, the accuracy of the computer learning process, and the appropriate ways to use this process in developing trading strategies. It further discusses the superiority of ANN over traditional methodologies. The study concludes with the description of successful use of ANN by various financial institutions.
Chatterjee, A., Ayadi, O. and Boone, B. (2000), "Artificial Neural Network and the Financial Markets: A Survey", Managerial Finance, Vol. 26 No. 12, pp. 32-45. https://doi.org/10.1108/03074350010767034Download as .RIS
MCB UP Ltd
Copyright © 2000, MCB UP Limited