Demonstrates a system that combines a neural network approach with an expert system to provide superior performance compared to either approach alone. Learning capability is provided in a software-based approach to commodity trading systems. The authors used the backpropagation network with some parameters selected experimentally. They used a human expert to implicitly define patterns, using hindsight, that an intelligent system might have been able to use for an accurate prediction. Desired outputs were found by a combination of observing the behavior of technical indices that normally precede a certain kind of market behavior, and by observing the actual market behavior in retrospect. Thus, the network learns to give signals based on data that look favorable to a human expert. The authors show the results of a rule-based daily trading system that has been augmented by a neural network market predictor.

Meeting Name

International Joint Conference on Neural Networks, 1991., IJCNN-91-Seattle


Electrical and Computer Engineering

Keywords and Phrases

Accurate Prediction; Backpropagation Network; Commodity Trading; Commodity Trading Model; Expert Systems; Financial Data Processing; Learning Capability; Market Behavior; Neural Nets; Neural Network-Expert System Hybrid; Performance; Rule-Based Daily Trading System; Software-Based Approach; Technical Indices

Document Type

Article - Conference proceedings

Document Version

Final Version

File Type





© 1991 Institute of Electrical and Electronics Engineers (IEEE), All rights reserved.

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