Deep learning and stock trading

When applied to the S&P 500 constituents from 1992 to 2015, their stock selections generated annual returns in the double digits--whereas the highest profits were made at times of financial turmoil. In March 2016, South Korean Lee Sedol, one of the best Go players in the world, lost to the AlphaGo computer program. It was a milestone in the history of artificial intelligence because up to that point the Asian board game had been considered too complex for computers. Behind successes such as this are programs that are modelled on biological systems and are constructed in a form similar to neural networks so that they can independently extract relationships from millions of data points. 'Artificial neural networks are primarily applied to problems, where solutions cannot be formulated with explicit rules,' explains Dr. Christopher Krauss of the Chair for Statistics and Econometrics at FAU. 'Image and speech recognition are typical fields of application, such as Apple's Siri.