<p>This thesis looks into how one could use Hierarchal Temporal Memory (HTM) networks to generate models that could be used as trading algorithms. The thesis begins with a brief introduction to algorithmic trading and commonly used concepts when developing trading algorithms. The thesis then proceeds to explain what an HTM is and how it works. To explore whether an HTM could be used to generate models that could be used as trading algorithms, the thesis conducts a series of experiments. The goal of the experiments is to iteratively optimize the settings for an HTM and try to generate a model that when used as a trading algorithm would have more profitable trades than losing trades. The setup of the experiments is to train an HTM to predict if it is a good time to buy some shares in a security and hold them for a fixed time before selling them again. A fair amount of the models generated during the experiments was profitable on data the model have never seen before, therefore the author concludes that it is possible to train an HTM so it can be used as a profitable trading algorithm.</p>

This thesis looks into how one could use Hierarchal Temporal Memory (HTM) networks to generate models that could be used as trading algorithms. The thesis begins with a brief introduction to algorithmic trading and commonly used concepts when developing trading algorithms. The thesis then proceeds to explain what an HTM is and how it works. To explore whether an HTM could be used to generate models that could be used as trading algorithms, the thesis conducts a series of experiments. The goal of the experiments is to iteratively optimize the settings for an HTM and try to generate a model that when used as a trading algorithm would have more profitable trades than losing trades. The setup of the experiments is to train an HTM to predict if it is a good time to buy some shares in a security and hold them for a fixed time before selling them again. A fair amount of the models generated during the experiments was profitable on data the model have never seen before, therefore the author concludes that it is possible to train an HTM so it can be used as a profitable trading algorithm.

<p>This Master Thesis has been performed at the Department of Electrical Engineering, Division of Electronic Devices in Linköping University. A study about HTM technology and a technical evaluation of advanced HTM picture recognition has been attained. HTM, which stands for Hierarchical Temporal Memory, is a technology developed by Numenta Inc. based on Jeff Hawkins theory on the brain function. The report includes also some essential facts about the brain for guidelines of engineers to reach a better understanding of the connection between the brain and the technology of HTM. Even if the technique of HTM is still young but the ambition of its developer is to design truly intelligent machines.</p>

This Master Thesis has been performed at the Department of Electrical Engineering, Division of Electronic Devices in Linköping University. A study about HTM technology and a technical evaluation of advanced HTM picture recognition has been attained. HTM, which stands for Hierarchical Temporal Memory, is a technology developed by Numenta Inc. based on Jeff Hawkins theory on the brain function. The report includes also some essential facts about the brain for guidelines of engineers to reach a better understanding of the connection between the brain and the technology of HTM. Even if the technique of HTM is still young but the ambition of its developer is to design truly intelligent machines.

At the start of the 21st century, the topic of complexity remains a formidable challenge in engineering, science and other aspects of our world. It seems that when disaster strikes it is because some complex and unforeseen interaction causes the unfortunate outcome. Why did the financial system of the world meltdown in 2008-2009? Why are global temperatures on the rise? These questions and other ones like them are difficult to answer because they pertain to contexts that require lengthy descriptions. In other words, these contexts are complex. But we as human beings are able to observe and recognize this thing we call 'complexity'. Furthermore, we recognize that there are certain elements of a context that form a system of complex interactions - i.e., a complex system. Many researchers have even noted similarities between seemingly disparate complex systems. Do sub-atomic systems bear resemblance to weather patterns? Or do human-based economic systems bear resemblance to macroscopic flows? Where do we draw the line in their resemblance? These are the kinds of questions that are asked in complex systems research. And the ability to recognize complexity is not only limited to analytic research. Rather, there are many known examples of humans who, not only observe and recognize but also, operate complex systems. How do they do it? Is there something superhuman about these people or is there something common to human anatomy that makes it possible to fly a plane? - Or to drive a bus? Or to operate a nuclear power plant? Or to play Chopin's etudes on the piano? In each of these examples, a human being operates a complex system of machinery, whether it is a plane, a bus, a nuclear power plant or a piano. What is the common thread running through these abilities? The study of situational awareness (SA) examines how people do these types of remarkable feats. It is not a bottom-up science though because it relies on finding general principles running through a host of varied human activities. Nevertheless, since it is not constrained by computational details, the study of situational awareness provides a unique opportunity to approach complex tasks of operation from an analytical perspective. In other words, with SA, we get to see how humans observe, recognize and react to complex systems on which they exert some control. Reconciling this perspective on complexity with complex systems research, it might be possible to further our understanding of complex phenomena if we can probe the anatomical mechanisms by which we, as humans, do it naturally. At this unique intersection of two disciplines, a hybrid approach is needed. So in this work, we propose just such an approach. In particular, this research proposes a computational approach to the situational awareness (SA) of complex systems. Here we propose to implement certain aspects of situational awareness via a biologically-inspired machine-learning technique called Hierarchical Temporal Memory (HTM). In doing so, we will use either simulated or actual data to create and to test computational implementations of situational awareness. This will be tested in two example contexts, one being more complex than the other. The ultimate goal of this research is to demonstrate a possible approach to analyzing and understanding complex systems. By using HTM and carefully developing techniques to analyze the SA formed from data, it is believed that this goal can be obtained.

Artificial general intelligence is not well defined, but attempts such as the recent listof “Ingredients for building machines that think and learn like humans” are a startingpoint for building a system considered as such [1]. Numenta is attempting to lead thenew era of machine intelligence with their research to re-engineer principles of theneocortex. It is to be explored how the ingredients are in line with the design princi-ples of their algorithms. Inspired by Deep Minds commentary about an autonomy-ingredient, this project created a combination of Numentas Hierarchical TemporalMemory theory and Temporal Difference learning to solve simple tasks defined in abrowser environment. An open source software, based on Numentas intelligent com-puting platform NUPIC and Open AIs framework Universe, was developed to allowfurther research of HTM based agents on customized browser tasks. The analysisand evaluation of the results show that the agent is capable of learning simple tasksand there is potential for generalization inherent to sparse representations. However,they also reveal the infancy of the algorithms, not capable of learning dynamic com-plex problems, and that much future research is needed to explore if they can createscalable solutions towards a more general intelligent system.

Strongly inspired by an understanding of mammalian cortical structure and function, the Hierarchical Temporal Memory Cortical Learning Algorithm (HTM CLA) is a promising new approach to problems of recognition and inference in space and time. Only a subset of the theoretical framework of this algorithm has been studied, but it is already clear that there is a need for more information about the performance of HTM CLA with real data and the associated computational costs. For the work presented here, a complete implementation of Numenta's current algorithm was done in C++. In validating the implementation, first and higher order sequence learning was briefly examined, as was algorithm behavior with noisy data doing simple pattern recognition. A pattern recognition task was created using sequences of handwritten digits and performance analysis of the sequential implementation was performed. The analysis indicates that the resulting rapid increase in computing load may impact algorithm scalability, which may, in turn, be an obstacle to widespread adoption of the algorithm. Two critical hotspots in the sequential code were identified and a parallelized version was developed using OpenMP multi-threading. Scalability analysis of the parallel implementation was performed on a state of the art multi-core computing platform. Modest speedup was readily achieved with straightforward parallelization. Parallelization on multi-core systems is an attractive choice for moderate sized applications, but significantly larger ones are likely to remain infeasible without more specialized hardware acceleration accompanied by optimizations to the algorithm.

S tím, jak se neustále vyvíjejí nové technologie pro energeticky náročná průmyslová odvětví, stávající zařízení postupně zaostávají v efektivitě a produktivitě. Tvrdá konkurence na trhu a legislativa v oblasti životního prostředí nutí tato tradiční zařízení k ukončení provozu a k odstavení. Zlepšování procesu a projekty modernizace jsou zásadní v udržování provozních výkonů těchto zařízení. Současné přístupy pro zlepšování procesů jsou hlavně: integrace procesů, optimalizace procesů a intenzifikace procesů. Obecně se v těchto oblastech využívá matematické optimalizace, zkušeností řešitele a provozní heuristiky. Tyto přístupy slouží jako základ pro zlepšování procesů. Avšak, jejich výkon lze dále zlepšit pomocí moderní výpočtové inteligence. Účelem této práce je tudíž aplikace pokročilých technik umělé inteligence a strojového učení za účelem zlepšování procesů v energeticky náročných průmyslových procesech. V této práci je využit přístup, který řeší tento problém simulací průmyslových systémů a přispívá následujícím: (i)Aplikace techniky strojového učení, která zahrnuje jednorázové učení a neuro-evoluci pro modelování a optimalizaci jednotlivých jednotek na základě dat. (ii) Aplikace redukce dimenze (např. Analýza hlavních komponent, autoendkodér) pro vícekriteriální optimalizaci procesu s více jednotkami. (iii) Návrh nového nástroje pro analýzu problematických částí systému za účelem jejich odstranění (bottleneck tree analysis – BOTA). Bylo také navrženo rozšíření nástroje, které umožňuje řešit vícerozměrné problémy pomocí přístupu založeného na datech. (iv) Prokázání účinnosti simulací Monte-Carlo, neuronové sítě a rozhodovacích stromů pro rozhodování při integraci nové technologie procesu do stávajících procesů. (v) Porovnání techniky HTM (Hierarchical Temporal Memory) a duální optimalizace s několika prediktivními nástroji pro podporu managementu provozu v reálném čase. (vi) Implementace umělé neuronové sítě v rámci rozhraní pro konvenční procesní graf (P-graf). (vii) Zdůraznění budoucnosti umělé inteligence a procesního inženýrství v biosystémech prostřednictvím komerčně založeného paradigmatu multi-omics.