Search

Technical and quantitative analysis in financial trading use mathematical and statistical tools to help investors decide on the optimum moment to initiate and close orders. While these traditional approaches have served their purpose to some extent, new techniques arising from the field of computational intelligence such as machine learning and data mining have emerged to analyse financial information. While the main financial engineering research has focused on complex computational models such as Neural Networks and Support Vector Machines, there are also simpler models that have demonstrated their usefulness in applications other than financial trading, and are worth considering to determine their advantages and inherent limitations when used as trading analysis tools. This paper analyses the role of simple machine learning models to achieve profitable trading through a series of trading simulations in the FOREX market. It assesses the performance of the models and how particular setups of the models produce systematic and consistent predictions for profitable trading. Due to the inherent complexities of financial time series the role of attribute selection, periodic retraining and training set size are discussed in order to obtain a combination of those parameters not only capable of generating positive cumulative returns for each one of the machine learning models but also to demonstrate how simple algorithms traditionally precluded from financial forecasting for trading applications presents similar performances as their more complex counterparts. The paper discusses how a combination of attributes in addition to technical indicators that has been used as inputs of the machine learning-based predictors such as price related features, seasonality features and lagged values used in classical time series analysis are used to enhance the classification capabilities that impacts directly into the final profitability. [ABSTRACT FROM AUTHOR]

A self-organizing computing network based on concepts of fuzzy conditions, beliefs, probabilities, and neural networks is proposed for decision-making in intelligent systems which are required to handle data sets with a diversity of data types. A sense- function with a sense-range and fuzzy edges is defined as a transfer function for connections from the input layer to the hidden layer in the network. By generating hidden cells and adjusting the parameters of the sense-functions, the network self-organizes and adapts to a training set. Computing cells in the input layer are designed as data converters so that the network can deal with both symbolic data and numeric data. Hidden computing cells in the network can be explained via fuzzy rules in a similar manner to those in fuzzy neural networks. The values in the output layer can be explained as a belief distribution over a decision space. The final decision is made by means of the winner-take-all rule. The approach was applied to a series of the benchmark data sets with a diversity of data types and comparative results obtained. Based on these results, the suitability of a range of data types for processing by different intelligent techniques was analyzed, and the results show that the proposed approach is better than other approaches for decision-making in information systems with mixed data types. [ABSTRACT FROM AUTHOR]

Unlike traditional artificial neural networks (ANNs), which use a high abstraction of real neurons, spiking neural networks (SNNs) offer a biologically plausible model of realistic neurons. They differ from classical artificial neural networks in that SNNs handle and communicate information by means of timing of individual pulses, an important feature of neuronal systems being ignored by models based on rate coding scheme. However, in order to make the most of these realistic neuronal models, good training algorithms are required. Most existing learning paradigms tune the synaptic weights in an unsupervised way using an adaptation of the famous Hebbian learning rule, which is based on the correlation between the pre- and post-synaptic neurons activity. Nonetheless, supervised learning is more appropriate when prior knowledge about the outcome of the network is available. In this paper, a new approach for supervised training is presented with a biologically plausible architecture. An adapted evolutionary strategy (ES) is used for adjusting the synaptic strengths and delays, which underlie the learning and memory processes in the nervous system. The algorithm is applied to complex non-linearly separable problems, and the results show that the network is able to perform learning successfully by means of temporal encoding of presented patterns. [ABSTRACT FROM AUTHOR]

Robotic ecologies are systems made out of several robotic devices, including mobile robots, wireless sensors and effectors embedded in everyday environments, where they cooperate to achieve complex tasks. This paper demonstrates how endowing robotic ecologies with information processing algorithms such as perception, learning, planning, and novelty detection can make these systems able to deliver modular, flexible, manageable and dependable Ambient Assisted Living (AAL) solutions. Specifically, we show how the integrated and self-organising cognitive solutions implemented within the EU project RUBICON (Robotic UBIquitous Cognitive Network) can reduce the need of costly pre-programming and maintenance of robotic ecologies. We illustrate how these solutions can be harnessed to (i) deliver a range of assistive services by coordinating the sensing & acting capabilities of heterogeneous devices, (ii) adapt and tune the overall behaviour of the ecology to the preferences and behaviour of its inhabitants, and also (iii) deal with novel events, due to the occurrence of new user׳s activities and changing user׳s habits. [ABSTRACT FROM AUTHOR]