For whatever reason, I have been looking at Deep Learning recently. Do not get me wrong. I do not think I could use this now and I am not recommending that Marco go out and buy a deep learning machine. But the machines they use are incredible!
To start with, if you really want to use this technique a CPU is out of date. You want to use a GPU. The amount of data they can process boggles my organic neural network (brain). There are few commercial machines available—most are specially made for Google, Amazon, Facebook and perhaps your favorite hedge fund.
You could get an NVIDIA machine for over $100,000. It seems graphics cards handle large arrays particularly well. I am not computer savvy but I can’t help but think of processing 8k pixels 60 times a second ^ petoflop level multiplied by hundreds of processors (something like what Google has). I did read about a quant fund that spends $1,000,000 a year on electricity but I have no insight into their system.
Fortunately, structured data (e.i., spreadsheet stuff) probably does not need an artificial neural network. Whew! My wife said I could not get that NVIDIA machine.
But this method may be useful for time-series using LSTM. LTSM stands for Long Short-Term Memory. Useful for time-series pattern recognition using recurrent neural networks. It would be extremely difficult (okay impossible) for me to program something that works. And let’s face it: when I was done it would be overfit.
But could you imagine someone with the resources programming everything Georg Vrba does (and more) into one artificial neural net?
Crazy huh? Just about as crazy as a computer figuring out how to beat the best human player at the game Go, I think. Do you think Google is building those incredible machines and using some of the best programmers in the world to just play games? Maybe companies are just building self-driving cars, or Amazon’s facial recognition system, Facebook’s um……sales/advertising Cambridge Anayltica um stuff. Maybe.
Doesn’t Google publish some limited data on its searches (regarding sentiment) for investors? Maybe they were too busy playing Go to see if this data has a pattern that could be recognized using deep learning. BTW, Google released TensorFlow as an open source and this is just one of the (often used) methods. One of the public ones anyway.
You can find some public research by Stanford (using TensorFlow). But what they are doing is LIMITED BY THEIR RESOURCES as they state in their own paper. link: [url=http://cs229.stanford.edu/proj2017/final-reports/5241098.pdf]http://cs229.stanford.edu/proj2017/final-reports/5241098.pdf[/url]
It is arguable as to how useful the technique used in this paper really is. It does not seem to be arguable that their conventional technique–used for comparison—is not so good.
Speaking of games: you cannot win this one without P123 (and maybe more) on your side.
-Jim