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Using a simple Neural Network for trading the forex markets
A neural network is a type of machine learning algorithm that is modeled after the structure and function of the brain. It is composed of a large number of interconnected nodes, which are similar to neurons in the brain. These nodes are organized into layers and communicate with each other by sending and receiving signals.
The overall goal of a neural network is to receive input data, apply transformations to the data, and generate output in the form of a prediction or classification.
The network learns to make these predictions or classifications by adjusting the strengths of the connections between its nodes, based on the input data it receives and the output it produces.
Let's say, my dear reader, that it is like a tiny human brain, but entirely dedicated and focused on a single task… And we all know the power of focus, right?
Extracting historic data
We know that finance.yahoo.com maintains a big repository of historical financial data on a wide array of currency pairs, stocks, indices, ETFs, and the like.
- To extract data from Yahoo Finance, you will need to use the Yahoo Finance API. This API allows you to access data from Yahoo Finance, such as stock prices and other financial information, in a…
