Transfer learning approach for financial applications

Artificial neural networks learn how to solve new problems through a computationally intense and time consuming process. One way to reduce the amount of time required is to inject preexisting knowledge into the network. To make use of past knowledge, we can take advantage of techniques that transfer the knowledge learned from one task, and reuse it on another (sometimes unrelated) task. In this paper we propose a novel selective breeding technique that extends the transfer learning with behavioural genetics approach proposed by Kohli, Magoulas and Thomas (2013), and evaluate its performance on financial data. Numerical evidence demonstrates the credibility of the new approach. We provide insights on the operation of transfer learning and highlight the benefits of using behavioural principles and selective breeding when tackling a set of diverse financial applications problems

e-Counterfeit: a mobile-server platform for document counterfeit detection

This paper presents a novel application to detect counterfeit identity documents forged by a scan-printing operation. Texture analysis approaches are proposed to extract validation features from security background that is usually printed in documents as IDs or banknotes. The main contribution of this work is the end-to-end mobile-server architecture, which provides a service for non-expert users and therefore can be used in several scenarios. The system also provides a crowdsourcing mode so labeled images can be gathered, generating databases for incremental training of the algorithms.Comment: 6 pages, 5 figure

A New Oscillating-Error Technique for Classifiers

This paper describes a new method for reducing the error in a classifier. It uses an error correction update that includes the very simple rule of either adding or subtracting the error adjustment, based on whether the variable value is currently larger or smaller than the desired value. While a traditional neuron would sum the inputs together and then apply a function to the total, this new method can change the function decision for each input value. This gives added flexibility to the convergence procedure, where through a series of transpositions, variables that are far away can continue towards the desired value, whereas variables that are originally much closer can oscillate from one side to the other. Tests show that the method can successfully classify some benchmark datasets. It can also work in a batch mode, with reduced training times and can be used as part of a neural network architecture. Some comparisons with an earlier wave shape paper are also made

Multivariate Stochastic Approximation to Tune Neural Network Hyperparameters for Criticial Infrastructure Communication Device Identification

The e-government includes Wireless Personal Area Network (WPAN) enabled internet-to-government pathways. Of interest herein is Z-Wave, an insecure, low-power/cost WPAN technology increasingly used in critical infrastructure. Radio Frequency (RF) Fingerprinting can augment WPAN security by a biometric-like process that computes statistical features from signal responses to 1) develop an authorized device library, 2) develop classifier models and 3) vet claimed identities. For classification, the neural network-based Generalized Relevance Learning Vector Quantization-Improved (GRLVQI) classifier is employed. GRLVQI has shown high fidelity in classifying Z-Wave RF Fingerprints; however, GRLVQI has multiple hyperparameters. Prior work optimized GRLVQI via a full factorial experimental design. Herein, optimizing GRLVQI via stochastic approximation, which operates by iterative searching for optimality, is of interest to provide an unconstrained optimization approach to avoid limitations found in full factorial experimental designs. The results provide an improvement in GRLVQI operation and accuracy. The methodology is further generalizable to other problems and algorithms

A Method for Autonomous Data Partitioning

In this paper, we propose a fully autonomous, non-parametric, data partitioning algorithm, which is able to automatically recognize local maxima of the density from empirical observations and use them as the focal points to form shape-free data clouds, i.e. a form of Voronoi tessellation. It is free from user- and problem- specific parameters and prior assumptions. The proposed algorithm has two versions: i) offline for static data and ii) evolving for streaming data. Numerical results based on benchmark datasets prove the validity of the proposed algorithm and demonstrate its excellent performance and high computational efficiency compared with the state-of-art clustering algorithms

Fredholm integral equations for function approximation and the training of neural networks

We present a novel and mathematically transparent approach to function approximation and the training of large, high-dimensional neural networks, based on the approximate least-squares solution of associated Fredholm integral equations of the first kind by Ritz-Galerkin discretization, Tikhonov regularization and tensor-train methods. Practical application to supervised learning problems of regression and classification type confirm that the resulting algorithms are competitive with state-of-the-art neural network-based methods. Patrick , Aizhan , Ral