Engineering Commons^™

A Commodity Trading Model Based On A Neural Network-Expert System Hybrid, K. Bergerson, Donald C. Wunsch

Electrical and Computer Engineering Faculty Research & Creative Works

Demonstrates a system that combines a neural network approach with an expert system to provide superior performance compared to either approach alone. Learning capability is provided in a software-based approach to commodity trading systems. The authors used the backpropagation network with some parameters selected experimentally. They used a human expert to implicitly define patterns, using hindsight, that an intelligent system might have been able to use for an accurate prediction. Desired outputs were found by a combination of observing the behavior of technical indices that normally precede a certain kind of market behavior, and by observing the actual market behavior …