Neural networks
After remaining a long time in academic circles due to their advanced mathematical background, neural networks (NN) rapidly grew in popularity as more practically usable formats are available – like the built-in function of R. NNs are artificial intelligence adaptive software that can detect complex patterns in data: it is just like an old trader who has a good market intuition but cannot always explain to you why he is convinced you should go short on the Dow Jones Industrial Average index (DIJA).
The network architecture consists of a number of nodes connected by links. Networks usually have 3 or 4 layers: input, hidden and output layers, and in each layer several neurons can be found. The number of first layer's nodes corresponds ...
Get Mastering R for Quantitative Finance now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
