Stochastic neural network
Encyclopedia
Stochastic neural networks are a type of artificial neural networks, which is a tool of artificial intelligence
Artificial intelligence
Artificial intelligence is the intelligence of machines and the branch of computer science that aims to create it. AI textbooks define the field as "the study and design of intelligent agents" where an intelligent agent is a system that perceives its environment and takes actions that maximize its...

. They are built by introducing random variations into the network, either by giving the network's neurons
Artificial neuron
An artificial neuron is a mathematical function conceived as a crude model, or abstraction of biological neurons. Artificial neurons are the constitutive units in an artificial neural network...

 stochastic
Stochastic process
In probability theory, a stochastic process , or sometimes random process, is the counterpart to a deterministic process...

 transfer functions, or by giving them stochastic weights. This makes them useful tools for optimization
Optimization (mathematics)
In mathematics, computational science, or management science, mathematical optimization refers to the selection of a best element from some set of available alternatives....

 problems, since the random fluctuations help it escape from local minima
Maxima and minima
In mathematics, the maximum and minimum of a function, known collectively as extrema , are the largest and smallest value that the function takes at a point either within a given neighborhood or on the function domain in its entirety .More generally, the...

.

Stochastic neural networks that are built by using stochastic transfer functions are often called Boltzmann machine
Boltzmann machine
A Boltzmann machine is a type of stochastic recurrent neural network invented by Geoffrey Hinton and Terry Sejnowski. Boltzmann machines can be seen as the stochastic, generative counterpart of Hopfield nets...

.

Example: Applications in analytical trading tools, Neural Networks made up of specific trading
instruments are used to "Predict" future price movements of one trading instrument such packaged
in VantagePoint's Predicted Stochastic indicator.
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