This paper enhances the Q-Iearning algorithm for optimal asset allocation proposed in (Neuneier, 1996 [6]). The new formulation simplifies the approach by using only one value-function for many assets and allows model-free policy-iteration. After testing the new algorithm on real data, the possibility of risk management within the framework of Markov decision problems is analyzed. The proposed methods allows the construction of a multi-period portfolio management system which takes into account transaction costs, the risk preferences of the investor, and several constraints on the allocation. 1 Introduction

We provide a model of the standard watermaze task, and of a more challenging task involving novel platform locations, in which rats exhibit one-trial learning after a few days of training. The model uses hippocampal place cells to support reinforcement learning, and also, in an integrated manner, to build and use allocentric coordinates. 1 INTRODUCTION

We present a novel generic approach to the problem of Event Related Potential identification and classification, based on a competitive N eural Net architecture. The network weights converge to the embedded signal patterns, resulting in the formation of a matched filter bank. The network performance is analyzed via a simulation study, exploring identification robustness under low SNR conditions and compared to the expected performance from an information theoretic perspective. The classifier is applied to real event-related potential data recorded during a classic oddball type paradigm; for the first time, withinsession variable signal patterns are automatically identified, dismissing the strong and limiting requirement of a-priori stimulus-related selective grouping of the recorded data.

The investigation of neural information structures in music is a rather new, exciting research area bringing together different disciplines such as computer science, mathematics, musicology and cognitive science. One of its aims is to find out what determines the personal style of a composer. It has been shown that neural network models - better than other AI approaches - are able to learn and reproduce styledependent features from given examples, e.g., chorale harmonizations in the style of Johann Sebastian Bach (Hild et al., 1992). However when dealing with melodic sequences, e.g., folksong style melodies, all of these models have considerable difficulties to learn even simple structures. The reason is that they are unable to capture high-order structure such as harmonies, motifs and phrases simultaneously occurring at multiple time scales.

A new algorithm is presented which approximates the perceived visual similarity between images. The images are initially transformed into a feature space which captures visual structure, texture and color using a tree of filters. Similarity is the inverse of the distance in this perceptual feature space. Using this algorithm we have constructed an image database system which can perform example based retrieval on large image databases. Using carefully constructed target sets, which limit variation to only a single visual characteristic, retrieval rates are quantitatively compared to those of standard methods. 1 Introduction Without supplementary information, there exists no way to directly measure the similarity between the content of images.

Scale invariance is a fundamental property of ensembles of natural images [1]. Their non Gaussian properties [15, 16] are less well understood, but they indicate the existence of a rich statistical structure. In this work we present a detailed study of the marginal statistics of a variable related to the edges in the images. A numerical analysis shows that it exhibits extended self-similarity [3, 4, 5]. This is a scaling property stronger than self-similarity: all its moments can be expressed as a power of any given moment. More interesting, all the exponents can be predicted in terms of a multiplicative log-Poisson process. This is the very same model that was used very recently to predict the correct exponents of the structure functions of turbulent flows [6]. These results allow us to study the underlying multifractal singularities. In particular we find that the most singular structures are one-dimensional: the most singular manifold consists of sharp edges.

A model of motion detection is presented. The model contains three stages. The first stage is unoriented and is selective for contrast polarities. The next two stages work in parallel. A phase insensitive stage pools across different contrast polarities through a spatiotemporal filter and thus can detect first and second order motion.

Image intensity variations can result from several different object surface effects, including shading from 3-dimensional relief of the object, or paint on the surface itself. An essential problem in vision, which people solve naturally, is to attribute the proper physical cause, e.g.

The observed distribution of natural images is far from uniform. On the contrary, real images have complex and important structure that can be exploited for image processing, recognition and analysis. There have been many proposed approaches to the principled statistical modeling of images, but each has been limited in either the complexity of the models or the complexity of the images. We present a nonparametric multi-scale statistical model for images that can be used for recognition, image de-noising, and in a "generative mode" to synthesize high quality textures.

In this paper, we present a novel hybrid architecture for continuous speech recognition systems. It consists of a continuous HMM system extended by an arbitrary neural network that is used as a preprocessor that takes several frames of the feature vector as input to produce more discriminative feature vectors with respect to the underlying HMM system. This hybrid system is an extension of a state-of-the-art continuous HMM system, and in fact, it is the first hybrid system that really is capable of outperforming these standard systems with respect to the recognition accuracy. Experimental results show an relative error reduction of about 10% that we achieved on a remarkably good recognition system based on continuous HMMs for the Resource Management 1 OOO-word continuous speech recognition task.