It's simpler... Most people just stick a NN or Computer Learning logic and lose control over it. It's a necessity for a system developer to have clarity over what's going on with their trades. Blindly using NN or any tool without any understanding / control is only increasing your risk of trading.
1. Yes 2. "Neural system" is another term for curve fitting when it applies to market data. The biggest problem is overtraning. Ron
Thanks for a lot of these comments! Very helpful indeed. A couple of followup questions: - Most folks who are running profitable mechanical trading systems - Are you running intraday or swing systems? Are you running them on SPY, DIA, IWM's or looking on individual stocks? Thanks
Sure, that is why all the volume keeps moving more and more to Automated Systems, because everyone is just losing in all these systems....LOL!!!!!!!!!! Remember, just because you can't build your own bridge across the river does not mean others can't.
Just another comment. It would not surprise me if the Naysayers here on mechanical trading systems or NN systems or mechanical systems enhanced with NN's have never actually worked with them.