Optimal artificial neural network topology for foreign exchange forecasting

Published 28 March 2008

Ahmed Emam

Citations16

TL;DR

Empirical results tend to confirm the applicability of a neural network model to the prediction of the foreign exchange rates market and daily predication results showed that ANN model learns well and most likely to generalize well.

Abstract

Foreign exchange market is one of the highest investments markets the average daily trade volume is 1.8 trillion USD. Foreign exchange rate forecasting has been always one of the most challenging subject and area of researches. Trader around the world is relying on the technical indicators which just following the price and has emerged a lag results. When the currency market has a random move (when the market is not trending) most of the indicators gets confused because of the fact that classical linear methods are unable to react with the non linearity in the data and hence with the market behavior.

Keywords

Computer ScienceDecision Sciences

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