Practical Use of Kohonen Neural Networks in Algorithmic Trading. Part I. Tools
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The subject of Kohonen neural networks was approached to in some articles on the mql5.com website, such as
Using Self-Organizing Feature Maps (Kohonen Maps) in MetaTrader 5 and
Self-Organizing Feature Maps (Kohonen Maps) - Revisiting the Subject. They introduced readers to the general principles of building neural networks of this type and visually analyzing the economic numbers of markets using such maps.
However, in practical terms, using Kohonen networks just for algorithmic trading has been confined with only one approach, namely the same visual analysis of topology maps built for the EA optimization results. In this case, one's value judgment, or rather one's vision and ability to draw reasonable conclusions from a picture turns out to be, perhaps, the crucial factor, sidelining the network properties regarding representing data in terms of nuts-and-bolts matters.
In other words, the features of neural network algorithms were not used to the full, i.e., they were used without automatically extracting knowledge or supporting decision making with specific recommendations. In this paper, we consider the problem of defining the optimal sets of robots' parameters in a more formalized manner. Moreover, we are going to apply Kohonen network to forecasting economic ranges. However, before proceeding to these applied problems, we should revise the existing source codes, get something fixed, and make some improvements.
It is highly recommended to read the above articles first, if you are not familiar with the terms such as 'network', 'layer', 'neuron' ('node'), 'link', 'weight', 'learning rate', 'learning range', and other notions related to Kohonen networks. Then we will have to saturate ourselves in this matter, so re-teaching the basic notions would lengthen this publication significantly.
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Dow Jones, US Dollar, Crude Oil, Earnings, Euro, EU Summit: Week Ahead
The Dow Jones and S&P 500 rose last week despite the US accumulating a grand total of 22 million jobless claims over the course of four weeks. This is the equivalent of wiping out the progress in employment gains since the aftermath of the 2008 financial crisis. While the haven-linked US Dollar saw some weakness, its downside progress has notably slowed.
Sentiment-linked crude was unable to capitalize on the rise in stocks as OPEC estimated oil demand dropping to a 30-year low. Meanwhile the growth-linked Australian Dollar cautiously rose despite China’s economy shrinking 6 percent y/y in the first quarter which was a historical downturn. Markets were able to look forward to slowing virus case growth globally.
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US Dollar Forecast: Fed Says No to NIRP, China Tension Flares
US Dollar outlook appears increasingly positive in consideration of fundamental developments that occurred over the last few trading sessions. USD price action edged higher post-Powell after the Federal Reserve Chair reiterated the central bank’s stance against using negative interest rate policy, or NIRP.
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Along with several other Federal Reserve officials, Fed Chair Powell spoke out against the idea of adopting negative interest rates in the United States as a channel of monetary stimulus. In response to recent Fed rhetoric, the US Dollar churned higher considering forward rate guidance from Powell was relatively less dovish than hoped by market participants.
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US Dollar 1Q 2021 Forecast
The US Dollar has put in for the worst performance of the G10 currencies through the final quarter of 2020. Facing an even deeper slide after recent critical technical breaks can relative growth or...
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Weekly Fundamental US Dollar Forecast
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The US Dollar (via the DXY Index) has been creeping higher throughout July, even as US Treasury yields and Fed rate hike expectations have pulled back.
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USD/ZAR - daily bearish breakdown
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South Africa's consumer price inflation increased marginally in September, figures from Statistics South Africa showed on Wednesday.
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Lululemon Is A Better Pick Over This Athleisure Giant
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Despite a higher valuation, we think that Lululemon’s stock currently is a better pick compared to Nike’s stock, given its better revenue and margins growth. Both companies benefited from the stay-at-home orders as customers favored athleisure and comfortable clothing for spending more time at home.
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Stocks This Week: Buy Schlumberger And Dollar Tree Stores
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Here are stocks to buy for the coming strong week:
- Schlumberger
- Dollar Tree Stores
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Australian Dollar Outlook
The Australian Dollar has strong fundamentals, but a hawkish Fed has favoured the US Dollar up to now. The fundamental backdrop for AUD remains solid, although it is not showing up in all of data at the moment.
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Daily price is on secondary correction within the primary bullish market condition: the price is trying to cross the bearish triangle pattern with 0.7391 support level to below for the secondary correction to be continuing up to the daily bearish reversal to be started.
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