Chapter 12 Evolving technical trading rules for S&P 500 futures
In recent years, various machine learning techniques such as genetic algorithms and neural networks have made their debut in financial markets. With earning your living as a trader being as hard as it is, any approach where you set up a computer to learn trading rules for you instead of applying your limited time and resources to the same task has an obvious appeal. Machine learning algorithms have indeed attracted attention in recent years (The Economist, 1993) and are likely to inspire an increasing amount of research on the technical aspects of the new trading techniques (Deboeck, 1994).
Since a machine learning paradigm is relatively new ...