Setting boundaries for neural networks
Risk.net Quants unveil new technique for controlling extrapolation by neural networks According to a popular internet meme, there are two types of people in this world: those who can extrapolate from incomplete data. Neural networks will probably struggle with that one. As quants race to deploy neural networks in finance, they are running into a common problem. Neural networks require huge datasets to train, but they do not always extrapolate well when faced with new situations. “Neural ne...
Source: risk.net