Neural networks and some applications to finance

Abstract

Neural networks are an established class of non-linear modelling technique. This paper offers an introduction and overview to neural nets with particular emphasis on financial applications. We present a brief history of the subject and provide details on two of the more popular models. In addition we survey some of the recent research issues and algorithms used in applying neural nets to real-world problems, and discuss some of the specific finance applications to which they have been applied.neural networks, multi-layer perceptrons, Kohonen networks, backpropagation, finance,

Comparing feed-forward versus neural gas as estimators: application to coke wastewater treatment

“…respectively, and are obtained by gradient descent of this energy function (9) in a similar way as described previously for (7).…”

“…The design of a NN model also has another disadvantage: the risk of overfitting during the training process. The solution is to reduce the effective complexity of the model [7]. In particular, ANNs have been widely applied for prediction purposes in WWTPs and environmental engineering over the past two decades [8][9][10], although the methods for implementing NN models are yet to be well defined.…”