Using news understanding and neural networks in foreign currency options trading

This paper explores the use of news understanding as a means to augment neural network based technical analysis with up to the minute market psychology forecasts to make automatic trade decisions. The work is based upon simulation of performance for foreign currency option trades. It provides the result of a simulation that shows the potential performance in terms of profitability. The data used includes a collection of news wires on financial information during the Winter of 1991 and the currency trade price histories during that time.<
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