HIGHER ORDER NEURAL NETWORK GROUP MODELS FOR FINANCIAL SIMULATION

2000 ◽  
Vol 10 (02) ◽  
pp. 123-142 ◽  
Author(s):  
MING ZHANG ◽  
JING CHUN ZHANG ◽  
JOHN FULCHER
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Continuous Function ◽  
Real World ◽  
Network Models ◽  
Higher Order ◽  
Financial Data ◽  
Neural Network Models ◽  
Piecewise Continuous ◽  
Discontinuous Data

Real world financial data is often discontinuous and non-smooth. If we attempt to use neural networks to simulate such functions, then accuracy will be a problem. Neural network group models perform this function much better. Both Polynomial Higher Order Neural network Group (PHONG) and Trigonometric polynomial Higher Order Neural network Group (THONG) models are developed. These HONG models are open box, convergent models capable of approximating any kind of piecewise continuous function, to any degree of accuracy. Moreover they are capable of handling higher frequency, higher order non-linear and discontinuous data. Results obtained using a Higher Order Neural network Group financial simulator are presented, which confirm that HONG group models converge without difficulty, and are considerably more accurate than neural network models (more specifically, around twice as good for prediction, and a factor of four improvement in the case of simulation).

Artificial Polynomial and Trigonometric Higher Order Neural Network Group Models

2013 ◽  
pp. 78-102 ◽  
Author(s):  
Ming Zhang
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Continuous Function ◽  
Trigonometric Polynomial ◽  
Network Models ◽  
Higher Order ◽  
Financial Data ◽  
Neural Network Models ◽  
Piecewise Continuous ◽  
Discontinuous Data

Real world financial data is often discontinuous and non-smooth. Accuracy will be a problem, if we attempt to use neural networks to simulate such functions. Neural network group models can perform this function with more accuracy. Both Polynomial Higher Order Neural Network Group (PHONNG) and Trigonometric polynomial Higher Order Neural Network Group (THONNG) models are studied in this chapter. These PHONNG and THONNG models are open box, convergent models capable of approximating any kind of piecewise continuous function to any degree of accuracy. Moreover, they are capable of handling higher frequency, higher order nonlinear, and discontinuous data. Results obtained using Polynomial Higher Order Neural Network Group and Trigonometric polynomial Higher Order Neural Network Group financial simulators are presented, which confirm that PHONNG and THONNG group models converge without difficulty, and are considerably more accurate (0.7542% - 1.0715%) than neural network models such as using Polynomial Higher Order Neural Network (PHONN) and Trigonometric polynomial Higher Order Neural Network (THONN) models.

Group Models of Artificial Polynomial and Trigonometric Higher Order Neural Networks

2021 ◽  
pp. 137-172
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Trigonometric Polynomial ◽  
Network Models ◽  
Higher Order ◽  
Financial Data ◽  
Neural Network Models ◽  
Higher Order Neural Networks ◽  
Piecewise Continuous ◽  
Discontinuous Data

Real-world financial data is often discontinuous and non-smooth. Neural network group models can perform this function with more accuracy. Both polynomial higher order neural network group (PHONNG) and trigonometric polynomial higher order neural network group (THONNG) models are studied in this chapter. These PHONNG and THONNG models are open box, convergent models capable of approximating any kind of piecewise continuous function, to any degree of accuracy. Moreover, they are capable of handling higher frequency, higher order nonlinear, and discontinuous data. Results confirm that PHONNG and THONNG group models converge without difficulty and are considerably more accurate (0.7542% - 1.0715%) than neural network models such as using polynomial higher order neural network (PHONN) and trigonometric polynomial higher order neural network (THONN) models.

Financial Data Prediction by Artificial Sine and Cosine Trigonometric Higher Order Neural Networks

2021 ◽  
pp. 262-301
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Network Models ◽  
Higher Order ◽  
Financial Data ◽  
Data Simulation ◽  
Neural Network Models ◽  
Data Prediction ◽  
Higher Order Neural Networks

This chapter develops two new nonlinear artificial higher order neural network models. They are sine and sine higher order neural networks (SIN-HONN) and cosine and cosine higher order neural networks (COS-HONN). Financial data prediction using SIN-HONN and COS-HONN models are tested. Results show that SIN-HONN and COS-HONN models are good models for some sine feature only or cosine feature only financial data simulation and prediction compared with polynomial higher order neural network (PHONN) and trigonometric higher order neural network (THONN) models.

Models of Artificial Multi-Polynomial Higher Order Neural Networks

2021 ◽  
pp. 97-136
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Real World ◽  
Network Models ◽  
Higher Order ◽  
Neural Network Models ◽  
Real World Data ◽  
World Data ◽  
Higher Order Neural Networks ◽  
Improved Accuracy

This chapter introduces multi-polynomial higher order neural network models (MPHONN) with higher accuracy. Using Sun workstation, C++, and Motif, a MPHONN simulator has been built. Real-world data cannot always be modeled simply and simulated with high accuracy by a single polynomial function. Thus, ordinary higher order neural networks could fail to simulate complicated real-world data. But MPHONN model can simulate multi-polynomial functions and can produce results with improved accuracy through experiments. By using MPHONN for financial modeling and simulation, experimental results show that MPHONN can always have 0.5051% to 0.8661% more accuracy than ordinary higher order neural network models.

Artificial Sine and Cosine Trigonometric Higher Order Neural Networks for Financial Data Prediction

2016 ◽  
pp. 716-744
Author(s):  
Ming Zhang
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Network Models ◽  
Higher Order ◽  
Financial Data ◽  
Neural Network Models ◽  
Data Prediction ◽  
Higher Order Neural Networks

This chapter develops two new nonlinear artificial higher order neural network models. They are Sine and Sine Higher Order Neural Networks (SIN-HONN) and Cosine and Cosine Higher Order Neural Networks (COS-HONN). Financial data prediction using SIN-HONN and COS-HONN models are tested. Results show that SIN-HONN and COS-HONN models are good models for financial data prediction compare with Polynomial Higher Order Neural Network (PHONN) and Trigonometric Higher Order Neural Network (THONN) models.

Artificial Sine and Cosine Trigonometric Higher Order Neural Networks for Financial Data Prediction

2016 ◽  
pp. 208-236 ◽  
Author(s):  
Ming Zhang
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Network Models ◽  
Higher Order ◽  
Financial Data ◽  
Neural Network Models ◽  
Data Prediction ◽  
Higher Order Neural Networks

This chapter develops two new nonlinear artificial higher order neural network models. They are Sine and Sine Higher Order Neural Networks (SIN-HONN) and Cosine and Cosine Higher Order Neural Networks (COS-HONN). Financial data prediction using SIN-HONN and COS-HONN models are tested. Results show that SIN-HONN and COS-HONN models are good models for financial data prediction compare with Polynomial Higher Order Neural Network (PHONN) and Trigonometric Higher Order Neural Network (THONN) models.

Using Rough Sets for Practical Feature Selection in a Rough Sets/Neural Network Framework for Knowledge Discovery

2000 ◽  
Vol 4 (1) ◽  
pp. 31-38 ◽  
Author(s):  
Ilona Jagielska ◽  
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Feature Selection ◽  
Decision Support ◽  
Knowledge Discovery ◽  
Real World ◽  
Rough Sets ◽  
Network Models ◽  
Feature Subset Selection ◽  
Neural Network Models

An important task in knowledge discovery is feature selection. This paper describes a practical approach to feature subset selection proposed as part of a hybrid rough sets/neural network framework for knowledge discovery for decision support. In this framework neural networks and rough sets are combined and used cooperatively during the system life cycle. The reason for combining rough sets with neural networks in the proposed framework is twofold. Firstly, rough sets based systems provide domain knowledge expressed in the form of If-then rules as well as tools for data analysis. Secondly, rough sets are used in this framework in the task of feature selection for neural network models. This paper examines the feature selection aspect of the framework. An empirical study that tested the approach on artificial datasets and real-world datasets was carried out. Experimental results indicate that the proposed approach can improve the performance of neural network models. The framework was also applied in the development of a real-world decision support system. The experience with this application has shown that the approach can support the users in the task of feature selection.

Rainfall Estimation Using Neuron-Adaptive Higher Order Neural Networks

2021 ◽  
pp. 375-414
Keyword(s):  
Neural Network ◽  
High Frequency ◽  
Network Models ◽  
Higher Order ◽  
Rainfall Estimation ◽  
Neural Network Models ◽  
Real World Data ◽  
Higher Order Neural Networks ◽  
Optimum Model ◽  
Discontinuous Data

Real-world data is often nonlinear, discontinuous, and may comprise high frequency, multi-polynomial components. Not surprisingly, it is hard to find the best models for modeling such data. Classical neural network models are unable to automatically determine the optimum model and appropriate order for data approximation. In order to solve this problem, neuron-adaptive higher order neural network (NAHONN) models have been introduced. Definitions of one-dimensional, two-dimensional, and n-dimensional NAHONN models are studied. Specialized NAHONN models are also described. NAHONN models are shown to be “open box.” These models are further shown to be capable of automatically finding not only the optimum model but also the appropriate order for high frequency, multi-polynomial, discontinuous data. Rainfall estimation experimental results confirm model convergence. The authors further demonstrate that NAHONN models are capable of modeling satellite data.

Models of Artificial Higher Order Neural Networks

2021 ◽  
pp. 1-96
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
High Frequency ◽  
Learning Algorithm ◽  
Network Models ◽  
Higher Order ◽  
Neural Network Models ◽  
Ultra High Frequency ◽  
Higher Order Neural Networks

This chapter introduces the background of the higher order neural network (HONN) model developing history and overviews 24 applied artificial higher order neural network models. This chapter provides 24 HONN models and uses a single uniform HONN architecture for all 24 HONN models. This chapter also uses a uniform learning algorithm for all 24 HONN models and uses uniform weight update formulae for all 24 HONN models. In this chapter, polynomial HONN, Trigonometric HONN, Sigmoid HONN, SINC HONN, and Ultra High Frequency HONN structure and models are overviewed too.

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