An academic review: applications of data mining techniques in finance industry

With the development of Internet techniques, data volumes are doubling every two years, faster than predicted by Moore’s Law. Big Data Analytics becomes particularly important for enterprise business. Modern computational technologies will provide effective tools to help understand hugely accumulated data and leverage this information to get insights into the finance industry. In order to get actionable insights into the business, data has become most valuable asset of financial organisations, as there are no physical products in finance industry to manufacture. This is where data mining techniques come to their rescue by allowing access to the right information at the right time. These techniques are used by the finance industry in various areas such as fraud detection, intelligent forecasting, credit rating, loan management, customer profiling, money laundering, marketing and prediction of price movements to name a few. This work aims to survey the research on data mining techniques applied to the finance industry from 2010 to 2015.The review finds that Stock prediction and Credit rating have received most attention of researchers, compared to Loan prediction, Money Laundering and Time Series prediction. Due to the dynamics, uncertainty and variety of data, nonlinear mapping techniques have been deeply studied than linear techniques. Also it has been proved that hybrid methods are more accurate in prediction, closely followed by Neural Network technique. This survey could provide a clue of applications of data mining techniques for finance industry, and a summary of methodologies for researchers in this area. Especially, it could provide a good vision of Data Mining Techniques in computational finance for beginners who want to work in the field of computational finance

Satisfiability Logic Analysis Via Radial Basis Function Neural Network with Artificial Bee Colony Algorithm

Radial Basis Function Neural Network (RBFNN) is a variant of artificial neural network (ANN) paradigm, utilized in a plethora of fields of studies such as engineering, technology and science. 2 Satisfiability (2SAT) programming has been coined as a prominent logical rule that defines the identity of RBFNN. In this research, a swarm-based searching algorithm namely, the Artificial Bee Colony (ABC) will be introduced to facilitate the training of RBFNN. Worth mentioning that ABC is a new population-based metaheuristics algorithm inspired by the intelligent comportment of the honey bee hives. The optimization pattern in ABC was found fruitful in RBFNN since ABC reduces the complexity of the RBFNN in optimizing important parameters. The effectiveness of ABC in RBFNN has been examined in terms of various performance evaluations. Therefore, the simulation has proved that the ABC complied efficiently in tandem with the Radial Basis Neural Network with 2SAT according to various evaluations such as the Root Mean Square Error (RMSE), Sum of Squares Error (SSE), Mean Absolute Percentage Error (MAPE), and CPU Time. Overall, the experimental results have demonstrated the capability of ABC in enhancing the learning phase of RBFNN-2SAT as compared to the Genetic Algorithm (GA), Differential Evolution (DE) algorithm and Particle Swarm Optimization (PSO) algorithm

Flood Forecasting Using Machine Learning Methods

This book is a printed edition of the Special Issue Flood Forecasting Using Machine Learning Methods that was published in Wate

NON-LINEAR MODEL PREDICTIVE CONTROL STRATEGIES FOR PROCESS PLANTS USING SOFT COMPUTING APPROACHES

The developments of advanced non-linear control strategies have attracted a considerable research interests over the past decades especially in process control. Rather than an absolute reliance on mathematical models of process plants which often brings discrepancies especially owing to design errors and equipment degradation, non-linear models are however required because they provide improved prediction capabilities but they are very difficult to derive. In addition, the derivation of the global optimal solution gets more difficult especially when multivariable and non-linear systems are involved. Hence, this research investigates soft computing techniques for the implementation of a novel real time constrained non-linear model predictive controller (NMPC). The time-frequency localisation characteristics of wavelet neural network (WNN) were utilised for the non-linear models design using system identification approach from experimental data and improve upon the conventional artificial neural network (ANN) which is prone to low convergence rate and the difficulties in locating the global minimum point during training process. Salient features of particle swarm optimisation and a genetic algorithm (GA) were combined to optimise the network weights. Real time optimisation occurring at every sampling instant is achieved using a GA to deliver results both in simulations and real time implementation on coupled tank systems with further extension to a complex quadruple tank process in simulations. The results show the superiority of the novel WNN-NMPC approach in terms of the average controller energy and mean squared error over the conventional ANN-NMPC strategies and PID control strategy for both SISO and MIMO systemsPetroleum Training Development Fun

State of the art of machine learning models in energy systems: A systematic review

Machine learning (ML) models have been widely used in the modeling, design and prediction in energy systems. During the past two decades, there has been a dramatic increase in the advancement and application of various types of ML models for energy systems. This paper presents the state of the art of ML models used in energy systems along with a novel taxonomy of models and applications. Through a novel methodology, ML models are identified and further classified according to the ML modeling technique, energy type, and application area. Furthermore, a comprehensive review of the literature leads to an assessment and performance evaluation of the ML models and their applications, and a discussion of the major challenges and opportunities for prospective research. This paper further concludes that there is an outstanding rise in the accuracy, robustness, precision and generalization ability of the ML models in energy systems using hybrid ML models. Hybridization is reported to be effective in the advancement of prediction models, particularly for renewable energy systems, e.g., solar energy, wind energy, and biofuels. Moreover, the energy demand prediction using hybrid models of ML have highly contributed to the energy efficiency and therefore energy governance and sustainability

Short Term Load Forecasting Using Computational Intelligence Methods

Load forecasting is very essential to the operation of electricity companies. It enhances the energy-efficient and reliable operation of a power system. This dissertation focuses on study of short term load forecasting using different types of computational intelligence methods. It uses evolutionary algorithms (i.e. Genetic Algorithm, Particle Swarm Optimization, Artificial Immune System), neural networks (i.e. MLPNN, RBFNN, FLANN, ADALIN, MFLNN, WNN, Recurrent NN, Wilcoxon NN), and fuzzy systems (i.e. ANFIS). The developed methods give load forecasts of one hour upto 24 hours in advance. The algorithms and networks were have been demonstrated using simulation studies. The power sector in Orissa has undergone various structural and organizational changes in recent past. The main focus of all the changes initiated is to make the power system more efficient, economically viable and better service oriented. All these can happen if, among other vital factors, there is a good and accurate system in place for forecasting the load that would be in demand by electricity customers. Such forecasts will be highly useful in proper system planning & operations. The techniques proposed in this thesis have been simulated using data obtained from State Load Dispatch Centre, Orissa for the duration September – 2006 to August – 2007

A Comprehensive Survey on Particle Swarm Optimization Algorithm and Its Applications

Particle swarm optimization (PSO) is a heuristic global optimization method, proposed originally by Kennedy and Eberhart in 1995. It is now one of the most commonly used optimization techniques. This survey presented a comprehensive investigation of PSO. On one hand, we provided advances with PSO, including its modifications (including quantum-behaved PSO, bare-bones PSO, chaotic PSO, and fuzzy PSO), population topology (as fully connected, von Neumann, ring, star, random, etc.), hybridization (with genetic algorithm, simulated annealing, Tabu search, artificial immune system, ant colony algorithm, artificial bee colony, differential evolution, harmonic search, and biogeography-based optimization), extensions (to multiobjective, constrained, discrete, and binary optimization), theoretical analysis (parameter selection and tuning, and convergence analysis), and parallel implementation (in multicore, multiprocessor, GPU, and cloud computing forms). On the other hand, we offered a survey on applications of PSO to the following eight fields: electrical and electronic engineering, automation control systems, communication theory, operations research, mechanical engineering, fuel and energy, medicine, chemistry, and biology. It is hoped that this survey would be beneficial for the researchers studying PSO algorithms

An Enhanced Wavelet Neural Network Model For Epileptic Seizure Detection And Prediction

Epilepsi merupakan suatu penyakit neurologi yang sangat lazim dan ditakuti orang ramai. Banyak kajian telah dibuat untuk membangunkan pengelas automatik yang dapat memberikan ketepatan yang lebih tinggi. Pengelas automatik ini dapat membantu doktor dalam mengenali pelbagai segmen isyarat electroencephalography (EEG) yang berbeza. Dalam kerja penyelidikan ini, suatu model rangkaian neural wavelet (RNW) telah dicadangkan bagi tujuan pengesanan dan ramalan serangan epilepsi. Arkitektur dan kon�gurasi RNW dapat ditambah baik menggunakan pendekatan metaheuristik. Khususnya, algoritma carian harmoni (CH) digunakan dan diterapkan dalam proses pembelajaran RNW. Tesis ini mengandungi tiga sumbangan utama. Pertama, algoritma CH digunakan dalam proses pemilihan �tur. Firstly, the HS algorithm is used in the feature selection stage. The HS algorithm, which is originally used for optimization problems involving real numbers, is modi�ed and employed in the task of feature selection, which involves binary values. Epilepsy is a very common and much-feared neurological disorder. Much research has been done in developing better automated classi�ers with higher accuracy that can help clinicians identify the di�erent segments of electroencephalography (EEG) signals. In this research work, an enhanced wavelet neural network (WNN) model is proposed for the purpose of epileptic seizure detection and prediction. The architecture and con�guration of WNNs can be further enhanced using metaheuristic strategies. Speci�cally, the harmony search (HS) algorithm is employed and incorporated in the learning of WNNs. The contribution of this thesis is threefold. Firstly, the HS algorithm is used in the feature selection stage. The HS algorithm, which is originally used for optimization problems involving real numbers, is modi�ed and employed in the task of feature selection, which involves binary values

Automatic classification of power quality disturbances using optimal feature selection based algorithm

The development of renewable energy sources and power electronic converters in conventional power systems leads to Power Quality (PQ) disturbances. This research aims at automatic detection and classification of single and multiple PQ disturbances using a novel optimal feature selection based on Discrete Wavelet Transform (DWT) and Artificial Neural Network (ANN). DWT is used for the extraction of useful features, which are used to distinguish among different PQ disturbances by an ANN classifier. The performance of the classifier solely depends on the feature vector used for the training. Therefore, this research is required for the constructive feature selection based classification system. In this study, an Artificial Bee Colony based Probabilistic Neural Network (ABCPNN) algorithm has been proposed for optimal feature selection. The most common types of single PQ disturbances include sag, swell, interruption, harmonics, oscillatory and impulsive transients, flicker, notch and spikes. Moreover, multiple disturbances consisting of combination of two disturbances are also considered. The DWT with multi-resolution analysis has been applied to decompose the PQ disturbance waveforms into detail and approximation coefficients at level eight using Daubechies wavelet family. Various types of statistical parameters of all the detail and approximation coefficients have been analysed for feature extraction, out of which the optimal features have been selected using ABC algorithm. The performance of the proposed algorithm has been analysed with different architectures of ANN such as multilayer perceptron and radial basis function neural network. The PNN has been found to be the most suitable classifier. The proposed algorithm is tested for both PQ disturbances obtained from the parametric equations and typical power distribution system models using MATLAB/Simulink and PSCAD/EMTDC. The PQ disturbances with uniformly distributed noise ranging from 20 to 50 dB have also been analysed. The experimental results show that the proposed ABC-PNN based approach is capable of efficiently eliminating unnecessary features to improve the accuracy and performance of the classifier