Vancouver, Canada, May 23, 2009 --(PR.com
)-- Neural networks can discover patterns in data and successfully predict the future trend. A small Canadian company, Addaptron Software - the developer of decision support tools for stock investors and traders - has developed NNSTP-2, neural network computer tool, to help stock traders in predicting stock prices within 1-60 days. NNSTP-2 predicts future share prices using Fuzzy Neural Network (FNN). It operates automatically when creating the FNN, training it, and mapping to classify a new input vector. The input data transformed to characteristic matrices before training FNN. The forecasting is based on automatic scan of different inputs periods (historical price and volume data) to define accuracy of each one by back testing. Then the final forecast is built on weighted averaging of all forecasts. Each weight is proportional to the accuracy of a certain input period forecast.
"No one and no tool are able to predict surely what will happen tomorrow and how it will drive the market," says Alex Shmatov, president and founder of Addaptron Software. "However, all investors use past data to make most investment decisions in the future. And this is a key in predicting - investors make their decisions based on historical stocks' supply-demand balance but their decisions drive the market tomorrow. So that besides, unknown unexpected factors in the future, we have a past-future correlation. Since the events from the past influence the future ones through investors semi-stochastically, the best tool to decode the correlation is an artificial neural network."
Using such software helps investors and traders to predict the stock market and to find an optimal timing to buy and sell stocks. In general, any good software may provide additional input to minimize the risks involved in stock investments. Evidently, the more information is taken into consideration, the more precise an investment-related solution and, consequently, the more profitable is investing. Therefore, it is wise to analyze data and draw the conclusions using multiple sources.
Addaptron Software (addaptron.com) develops and provides advanced data processing software tools to businesses and individuals who choose to improve efficiency of their decision-making. The company specialized in developing software that enables comprehensive data processing to extract meaningful and useful information in areas of investment, management, and marketing. One of the main approaches is to reflect precisely system's quality using mathematical modeling. Currently, the company provides software tools to investors to help them more effectively manage their investments.