Whats the best application of a neural net in a trading system ?
Numerous users of neural net technology have reported that using a neural net to predict the future TRADING RANGE of a price time series is likely to produce better results than most other kinds of forecasts, including future percent-price-change, future price, and future volatility. To forecast future price range, you need to create TWO neural nets. One to forecast the HIGHEST price of the next N days (minutes, ticks) and one to forecast the LOWEST price of the next N days.
