Neural networks’ first big success was in predicting the stock market. Because they could detect small nonlinearities in very noisy data, they beat the linear models then prevalent in finance and their use spread. A typical investment fund would train a separate network for each of a large number of stocks, let the networks pick the most promising ones, and then have human analysts decide which of those to invest in. A few funds, however, went all the way and let the learners themselves buy and sell. Exactly how all these fared is a closely guarded secret, but it’s probably not an accident
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