Greed and Fear - Daily trading signals based on mathematics and software, no opinion, no emotion, no ego. Now with verified trading results!

The field of machine learning is a very fascinating one. And because the Greed and Fear indicator is a neural network, there's a lot to discuss about ways to apply neural networks and machine learning in trading.

software bugIf you're a software developer like me, then the phenomenon of a so-called bug is a well know thing. The other day, I ran some tests and discovered one in my neural network which has significantly degraded the performance in the last 6 months. 

upgrade signSince the last upgrade to the Greed and Fear indicator, I have made new significant progress. As shown in the previous update, there was still some concern with the performance in the last couple of months of the simulation. After reconfiguring the neural network and re-transforming the input data, that concern is now gone. The performance now manages to go steadily higher in that last couple of months as well to end up somewhere around the 10000 points, much higher than previous results.

upgrade signJust recently I explained to some extent what the Greed and Fear indicator is all about and how development and improvements are made over time. In the last couple of months I've been working on finishing up a new version that shows enormous improvements.

neural networkEarly visitors of this blog have seen my daily posts for years now with the so called Greed and Fear indicator and to which direction it was pointing. This was my initial attempt to expose the indicator to the public. Along the way, the performance was measured of course, to see if it was any good and useful in trading. The most honest way to measure this performance was by counting index points 'it called right' subtracted by 'index points it called wrong', as I've explained here in more detail.

But during all those year, I never explained in some more detail what the Greed and Fear indicator really was, while this is probably one of the most fascinating subjects today: a neural network! The more widely known terminology would be machine learning, artificial intelligence etc. There are subtle differences, but it all comes down to 'intelligent software'.