Vancouver, Canada (PressExposure) August 11, 2009 -- Addaptron Software released a new upgraded version of Neural Network Stock Trend Predictor, NNSTP-2. It is a tool for stock market investors and traders to predict stock prices for short terms and to find the best timing to buy and sell.
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 - today investors make their decisions taking into consideration 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.