Financial Forecasting Using Neural Networks: A Review
Neural networks are good at classification, forecasting and recognition. They are also good candidates of financial forecasting tools. Forecasting is often used in the decision making process. Neural network training is an art. Trading based on neural network outputs, or trading strategy is also an art. The authors will discuss a seven-step neural network forecasting model building approach in this paper. Pre and post data processing/analysis skills, data sampling, training criteria and model recommendation will also be covered in this paper.