Artificial Intelligence in the Capital Markets: State-of-the-Art Applications for Institutional Investors, Bankers & Traders

Roy S. Freedman, Robert A. Klein, and Jess Lederman, Editors

ISBN 1-55738-811-3, 750 pp. 1995. Unlike other books on artificial intelligence which emphasize theory, Artificial Intelligence in the Capital Markets is eminently practical. Not only does it describe actual applications, it provides a wealth of information about systems design, software products, and leading consulting firms in the industry. Comprehensive and authoritative, the book covers virtually the entire AI field of interest to investors.

Some of the applications highlighted in this book include:

• Fidelity Investments applying neural networks to stock selection
• Hedge fund manager James O’Sullivan using neural networks to filter information and identify investment opportunities
• Lehman Brothers’ designing and intelligent infrastructure for its front office

Featuring contributions from the top practitioners, the book explains the advantages and disadvantages of every major AI technology from the perspective of an existing or prospective user of AI technologies.

Virtual Trading: How Any Trader with a PC Can Use the Power of Neural Nets and Expert Systems to Boost Trading Profits

Jess Lederman and Robert A. Klein, Editors

ISBN 1-55738-812-1, 300 pp. 1995. In plain language, Virtual Trading shows you how to proceed from data collection to system development to actual trading. Featuring contributions from the leading experts in the field, Virtual Trading provides in-depth information on every important aspect of artificial intelligence in trading. Highlights include:

• Synergistic market analysis using neural networks by Lou Mendelsohn
• Developing a market-timing system using genetic algorithms by Casimir Klimasauskas
• Neural networks and stock market valuation by John Kean
• Applying chaos theory to a neural network by Joseph Shepard
• Developing a trading system that uses AI by Mark Jurik
• Neural network techniques for time series analysis by Peter Davies

In addition, Virtual Trading provides a detailed explanation of some of the top artificial intelligence systems available for traders.

Those trading without the assistance of AI are in a weak position and, in all probability, will wind up on the losing side.

Jeffrey Owen Katz, President, Scientific Consultant Services

Chaos Theory in the Financial Markets: Applying Fractals, Fuzzy Logic, Genetic Algorithms, Swarm Simulation, and the Monte Carlo Method to Manage Market Chaos and Volatility

Dimitris N. Chorafas

ISBN 1-55738-555-6, 400 pp, 1994. Chaos Theory in the Financial Markets explores a wide variety of new approaches that provide an entirely new perspective on financial market analysis and forecasting. Chorafas covers the concepts and mathematics of chaos theory, forecasting with nonlinear equations and fractals, and much, much more. Utilizing nonlinear mathematics to identify the underlying rules of evolving systems provides extraordinary insights into the dynamics of financial markets. Topics include:

• The concepts and mathematics of chaos theory
• Using nonlinear equations and fractals to forecast the currency market
• Genetic algorithms and neural networks

The book succeeds in distilling complex theoretical systems into concise explanations