Quote:
Originally Posted by johnnykanoo
Wow!!!! fantastic post. I get it now. So you are saying that based on price movements of the past the nn (neural network) will be able to churn out a future price. So in a way it is a program that seeks to trade like many people do in that we look at indicators which show past price movement and we try to (ugly word) predict future movements. The reason I like the nn as it is applied here is it is mathamaticaly correct and that can be good. (no trading on a whim) If an nn was able to give us a "realtime" indicator wow that could be pretty powerful stuff.
Excellent work so far. Im definatly interested and when I have some time i will read your links on nn basics.
thanks, john
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Hi John,
You got it right. Exactly as you said
a well trained neural network is like a highly experienced trader who can easily catch the market movements. He does it as he has been trading for a while and learning these patterns of the forex market.
But to be frank it is also not so easy to design a neural network. It all depends on what parameters (inputs and outputs) are chosen for forecasting a specific pattern. This is why I want to discuss this topic so that I get valuable feedback from the experienced traders. If we ask about RSI or MACD or Stoch to different traders, we get also different answers how they use them and for what purpose they use them. Example some use RSI for trend confirmation and others for support and resistance.
After a lot of trial and error attempts the current Neural Network indicator (NeuroTrend) is able to forecast trend changes. But I don't say it is highly accurate and it can forecast all the time 100% correct. This will strongly depend on the training.
Best Wishes,
Arun