Neural Networks — The Future of Forecasting in Finance?

The most well-known forecasting technique in finance is chart analysis, which only evaluates data from a specific time series in the past. In contrast, a fundamental analysis attempts to describe the actual dynamics of market processes. The success of chart analyses is handicapped by the low volume of input information, while that of a fundamental analysis is limited by the complexity of the market and the fact that it disregards the psychological factors influencing decision-making. Neural Networks can be interpreted as an interacting decision process with the ability to extract a high dimensional nonlinear structure from observations by learning.

Authors and Affiliations

1. Corporate Research and Development, Siemens AG, ZFE T SN 4, 81739, Munich, Germany

   Hans Georg Zimmermann

Editors and Affiliations

1. Dutch Foundation for Neural Networks (SNN), Geert Grooteplein Noord 21, 6525 EZ, Nijmegen, The Netherlands

   Bert Kappen  & Stan Gielen  & 

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