An Automated System for Stock Market Trading Based on Logical Clustering

In this paper a novel clustering-based system for automated stock market trading is introduced. It relies on interpolative Boolean algebra as underlying mathematical framework used to construct logical clustering method which is the central component of the system. The system uses fundamental analysis ratios, more precisely market valuation ratios, as clustering variables to differentiate between undervaluated and overvaluated stocks. To structure investment portfolio, the proposed system uses special weighting formulas which automatically diversify investment funds. Finally, a simple trading simulation engine is developed to test our system on real market data. The proposed system was tested on Belgrade Stock Exchange historical data and was able to achieve a high rate of return and to outperform the BelexLine market index as a benchmark variable. The paper has also provided in-depth analysis of the system’s investment decision making process which reveals some exciting insights

A Winnow-Based Approach to Context-Sensitive Spelling Correction

A large class of machine-learning problems in natural language require the characterization of linguistic context. Two characteristic properties of such problems are that their feature space is of very high dimensionality, and their target concepts refer to only a small subset of the features in the space. Under such conditions, multiplicative weight-update algorithms such as Winnow have been shown to have exceptionally good theoretical properties. We present an algorithm combining variants of Winnow and weighted-majority voting, and apply it to a problem in the aforementioned class: context-sensitive spelling correction. This is the task of fixing spelling errors that happen to result in valid words, such as substituting "to" for "too", "casual" for "causal", etc. We evaluate our algorithm, WinSpell, by comparing it against BaySpell, a statistics-based method representing the state of the art for this task. We find: (1) When run with a full (unpruned) set of features, WinSpell achieves accuracies significantly higher than BaySpell was able to achieve in either the pruned or unpruned condition; (2) When compared with other systems in the literature, WinSpell exhibits the highest performance; (3) The primary reason that WinSpell outperforms BaySpell is that WinSpell learns a better linear separator; (4) When run on a test set drawn from a different corpus than the training set was drawn from, WinSpell is better able than BaySpell to adapt, using a strategy we will present that combines supervised learning on the training set with unsupervised learning on the (noisy) test set.Comment: To appear in Machine Learning, Special Issue on Natural Language Learning, 1999. 25 page

Mining and visualizing uncertain data objects and named data networking traffics by fuzzy self-organizing map

Uncertainty is widely spread in real-world data. Uncertain data-in computer science-is typically found in the area of sensor networks where the sensors sense the environment with certain error. Mining and visualizing uncertain data is one of the new challenges that face uncertain databases. This paper presents a new intelligent hybrid algorithm that applies fuzzy set theory into the context of the Self-Organizing Map to mine and visualize uncertain objects. The algorithm is tested in some benchmark problems and the uncertain traffics in Named Data Networking (NDN). Experimental results indicate that the proposed algorithm is precise and effective in terms of the applied performance criteria.Peer ReviewedPostprint (published version

On Optimally Partitioning Variable-Byte Codes

The ubiquitous Variable-Byte encoding is one of the fastest compressed representation for integer sequences. However, its compression ratio is usually not competitive with other more sophisticated encoders, especially when the integers to be compressed are small that is the typical case for inverted indexes. This paper shows that the compression ratio of Variable-Byte can be improved by 2x by adopting a partitioned representation of the inverted lists. This makes Variable-Byte surprisingly competitive in space with the best bit-aligned encoders, hence disproving the folklore belief that Variable-Byte is space-inefficient for inverted index compression. Despite the significant space savings, we show that our optimization almost comes for free, given that: we introduce an optimal partitioning algorithm that does not affect indexing time because of its linear-time complexity; we show that the query processing speed of Variable-Byte is preserved, with an extensive experimental analysis and comparison with several other state-of-the-art encoders.Comment: Published in IEEE Transactions on Knowledge and Data Engineering (TKDE), 15 April 201

Neural Networks retrieving Boolean patterns in a sea of Gaussian ones

Restricted Boltzmann Machines are key tools in Machine Learning and are described by the energy function of bipartite spin-glasses. From a statistical mechanical perspective, they share the same Gibbs measure of Hopfield networks for associative memory. In this equivalence, weights in the former play as patterns in the latter. As Boltzmann machines usually require real weights to be trained with gradient descent like methods, while Hopfield networks typically store binary patterns to be able to retrieve, the investigation of a mixed Hebbian network, equipped with both real (e.g., Gaussian) and discrete (e.g., Boolean) patterns naturally arises. We prove that, in the challenging regime of a high storage of real patterns, where retrieval is forbidden, an extra load of Boolean patterns can still be retrieved, as long as the ratio among the overall load and the network size does not exceed a critical threshold, that turns out to be the same of the standard Amit-Gutfreund-Sompolinsky theory. Assuming replica symmetry, we study the case of a low load of Boolean patterns combining the stochastic stability and Hamilton-Jacobi interpolating techniques. The result can be extended to the high load by a non rigorous but standard replica computation argument.Comment: 16 pages, 1 figur

Fuzzy Interpolation Systems and Applications

Fuzzy inference systems provide a simple yet effective solution to complex non-linear problems, which have been applied to numerous real-world applications with great success. However, conventional fuzzy inference systems may suffer from either too sparse, too complex or imbalanced rule bases, given that the data may be unevenly distributed in the problem space regardless of its volume. Fuzzy interpolation addresses this. It enables fuzzy inferences with sparse rule bases when the sparse rule base does not cover a given input, and it simplifies very dense rule bases by approximating certain rules with their neighbouring ones. This chapter systematically reviews different types of fuzzy interpolation approaches and their variations, in terms of both the interpolation mechanism (inference engine) and sparse rule base generation. Representative applications of fuzzy interpolation in the field of control are also revisited in this chapter, which not only validate fuzzy interpolation approaches but also demonstrate its efficacy and potential for wider applications