Greetings from NeuroDimension!

The World Leader in Neural Network Software

 

This issue of the NeuroDimension newsletter highlights news about our neural network courses and two new product upgrades, along with a helpful article on selecting neural network inputs.

 

In this issue you’ll find:

 

What’s New and News?

  *  Neural Network Course Completed

  *  New Neural Network Course Added

 

Product Upgrade Announcements

  *  TradingSolutions v2.0 Now Available

  *  NeuroSolutions v4.18 Upgrade Available

 
Designing Neural Networks

  *  Selecting Inputs

 

Note: You are receiving this newsletter because you requested to stay informed concerning new developments at NeuroDimension. If you would like to stop receiving these newsletters, please see the bottom of this newsletter for removal instructions.

 

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What’s New and News?

 

Neural Network Course Completed

We successfully completed another course on neural networks and NeuroSolutions earlier this month. Attendance was down a little due to the recent decline in air travel, but those who attended seemed very pleased that the instructors were able to spend the extra time to address their individual problems and questions. In fact, we received the highest marks yet from the surveys given to the attendees – we received an average score of 4.67 of 5 when asked to rate the overall quality of the course.

 

New Neural Network Course Added

The next neural network course has been scheduled for April 29 - May 3, 2002 at the Grosvenor Resort, located in the Walt Disney World Resort in Orlando, Florida. A 10% discount is available for early registration, so be sure to register today!

 

Our course format allows both novice and advanced users to find a suitable course. Offered courses include: "Introduction to NeuroSolutions", "Fundamentals of Neural Networks and NeuroSolutions", and "Advanced NeuroSolutions". The courses include a copy of our interactive book, Neural and Adaptive Systems: Fundamentals Through Simulations.

 

For details on this new offering, or to sign-up from the Internet, see http://www.nd.com/course/may_2002.htm

For general ND course information, see http://www.nd.com/course 

 

For more information and samples of the interactive book, see http://www.nd.com/products/nsbook.htm

 

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Product Upgrade Announcement

TradingSolutions v2.0 Now Available

 

TradingSolutions v2.0 is now available from NeuroDimension. TradingSolutions is software that helps you make better trading decisions by combining traditional technical analysis with state-of-the-art artificial intelligence technologies. Version 2.0 introduces many new features and enhancements, including:

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The TradingSolutions Solution Service

The TradingSolutions Solution Service is a service maintained by NeuroDimension (the creators of TradingSolutions). It provides you with models, data, and commentary for a select group of stocks that you can follow on a daily basis. These models also provide a valuable learning tool as examples for creating your own models.

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Easier-to-Follow Signals

New features make it easier to track and trade signals with TradingSolutions. Easily identify the signals you want to trade. Add those signals to your portfolio along with custom analyses of how they would have traded. Even keep notes about your successes right in your portfolio!

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Improved Demonstrations and Tutorials

The animated demos in TradingSolutions have been completely rewritten to tell you exactly what TradingSolutions can do for you, as well as how you can start using TradingSolutions for your trading today.

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You can find out more about TradingSolutions and download a free evaluation version from our newly redesigned TradingSolutions website at http://www.tradingsolutions.com

 

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Product Upgrade Announcement

NeuroSolutions v4.18 Upgrade Available

 

NeuroSolutions v4.18 is now available from NeuroDimension. This release addresses a few minor bugs outlined at http://www.nd.com/support/nsimprove.htm

 

Please report any other bugs that you encounter to support@nd.com so that they will be fixed for the next upgrade patch.

 

If you already have NeuroSolutions v4.0 or v4.1 installed on your computer you can upgrade to v4.18 by downloading and running the patch from http://www.nd.com/support/ns_patch.htm

 

The complete installation program is available for download at http://www.nd.com/download.htm

 

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Designing Neural Networks

This Issue: Selecting Inputs

 

Frequently users have a problem of trying to decide which and how many of the myriad of possible inputs should be used to solve the problem at hand. For instance, if the problem is predicting the price of oil tomorrow, should we include the price of other commodities in the input, and if so, which ones?

 

The first reaction of many people is to use all of the possible inputs and assume the network will find the right ones. This is highly inefficient and more importantly causes severe generalization problems. For small neural networks, a good rule of thumb is that if you have N input columns into your network, you would like to have at least 40*N exemplars (e.g. samples or rows) of training data. This is a simplification of the more general 10*number_of_weights rule we have used in the past.

 

The most important (and obvious) method for selecting which inputs to use is intuition and reason. If you think the input is related to the output, then use the data.  If there is reason to believe that it is not, then don’t include it.  Intuition, whether you know it or not, is always the first thing you use in selecting the subset of data you will even consider using.

 

The next methodology you should consider is correlation between input and output (this can be done in NeuroSolutions for Excel, TradingSolutions, or external statistical packages). Correlation measures the relationship between two variables and ranges from -1 to 1. Any correlation between input and output that is significantly different from 0 is probably useful in the neural network. The important thing to remember is that correlation measures linear relationships, so if a relationship only exists for a certain range of inputs, correlation may not adequately reflect how useful that input may be to a nonlinear system.

 

Another technique that is useful is sensitivity analysis. This was described in our June 2000 newsletter and measures how important each input in the network is in making the decision/prediction.

 

Another option is to use genetic algorithms to selectively turn inputs on and off in order to find the optimal set of inputs to solve the current problem. Genetic optimization can be used in NeuroSolutions (NeuralBuilder and NeuralExpert), NeuroSolutions for Excel (train genetic), and TradingSolutions.

 

Our recommendation to get from the potentially infinite possibilities to a reasonable set is as follows:

 

1.  Use your intuition as a first guess as to what is reasonable. Narrow your choices down to no more than 100 or so.

2.  Use correlation analysis to further narrow your choices to no more than 20.

3.  Use genetic optimization to find the best subset of those 20.

4.  Use sensitivity analysis to ensure that all of that subset is actually important in determining the appropriate result.

 

Finally, remember that the number of inputs you select should be supported by the basic rules of thumb for the number of samples of data you have available.

 

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Comments or Suggestions?

 

We appreciate your feedback! Please send us your comments or suggestions concerning this newsletter, our web site, or part of the NeuroDimension product line. Write to us at: feedback@nd.com

 

Have questions about NeuroDimension products or training services? Send your questions to: info@nd.com

 

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