WEEKLY DIGEST 2014, December 27 - 2015, January 03 for Neural Networks in Trading & Everywhere: Neural network over-fitting

Neural programming is used to create software that mimics the brain’s basic functions. It is a key component to artificial intelligence (AI) and creates software that can predict unknowns, such as weather and stock market trends as well as games in which the cyber opponent improves as it gains experience. The advantage of neural programming over traditional programming is its software is able to learn and adapt to new data.

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My guest today is Dr. Ted Warnock he is a PHD in aerospace engineering, we’re talking about artificial intelligence and neural networks.  Dr. Warnock, how do you use a neural network in the financial markets to help you trade?

Well, basically a neural network can be used to bring in inputs from all the related markets that impact the market that you are interested in trading and the information from each of those markets can be used to predict what’s going to happen in the market that you’re interested in.

So can you kind of in laymen’s term define what a neural network does or what it is?

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Neural network over-fitting
The article
"I've learned that over-fitting can be detected by plotting the training error and the testing error versus the epochs. Like in: "

Overfitting is not only when test error increases with iterations. We say that there is overfitting when the performance on test set is much lower than the performance on train set (because the model fits too much to seen data, and do not generalize well).

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Is there a tutorial for how to apply deep learning/architectures to financial trading/algorithmic trading?
good story
"I started teaching myself technical analysis trading about 3 years ago. I opened a broker account in the United States and started developing software for algorithmic trading"