Researchers are taking the emerging science of convolutional neural networks (CNNs) with deep learning to achieve a system of market forecasting with the potential for greater gains and fewer losses. SciTech Daily brought this interesting information to us in their article, “AI System – Using Neural Networks With Deep Learning – Beats Stock Market in Simulation.

The University of Cagliari-based team set out to create a strategy powered by artificial intelligence (AI) to buy and hold (B&H). Essentially in the stock market world, this is a system of deciding whether to take one of three possible actions — a long action (buying a stock and selling it before the market closes), a short action (selling a stock, then buying it back before the market closes) and a hold (deciding not to invest in a stock that day).

This is an important achievement because older B&H systems based their decisions on machine learning, a discipline that leans heavily on predictions based on past performance. With deep learning, they are taking market forecasting a step further.

Melody K. Smith

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