JAVAQUOTE IV/VI
(REAL TIME BROKING AND ANALYSIS JAVAWARE)
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BACKGROUND
 Neuronal Network
Artificial Neural networks (as compared to real ones) are mathematical systems that are comprised of a number of "processing units" that are linked via weighted interconnections.
A processing unit is essentially an equation which is often referred to as a "transfer function". A processing units takes weighted signals from other neurons, possibly combines them, transforms them and outputs a numeric result. Processing units are often considered crudely analogous to real neurons and since they are linked together in a mesh or network, the name Neural Networks was coined.
Neural networks are gaining acceptance because of there ability to capture non-linear dynamics of a system. There is a growing body of evidence to suggest that financial markets are "Chaotic" and not a "Random Walk". Neural networks are uniquely able to model this non-linear systems.
Although there are many ways to build trading models, a neural network has many advantages. Neural networks are data driven without an underlying theory of what is important. A neural network can use the best elements of "fundamental" and "technical" analysis to build trading models. Neural networks can model non-linear relationships. In recent years the work done using statistical analysis to support the "efficient market theory" has come under attack. Most of this work was done using analytical tools that have an assumption of linearity. Increasingly theorist think the markets like other natural systems display "chaotic" behavior. The changes of "chaotic" system appear random, but in fact are controlled by an underlying non-linear system. By looking only at the input and output data a neural network can model and predict these complex non-linear systems.
The availability of cheap computers, charting software, and real time data feeds has brought more people into the search for a winning system. Neural networks are a major advance or advantage over even the most complex non-neural trading system. With a typical charting package a trader can look at many signals, but it is difficult to figure out which signals are most important under which circumstances. Even a good mathematician has trouble developing a set of rules that will work with half a dozen indicators. With the right kind of neural net software, you can put the computer to work to search 50-100 signals and thousand of records to develop composite timing signal that really means something. A neural network derives its "rules" by examining the data, testing, and re-testing to find a model that reproduces your desired signal(output) based on the inputs. These models are able to find hidden non-linear relationships in the data that other techniques will not find.
Within the Java Quote application a neuronal network could help at first to extract the user profile by examining the personal portfolio and the transaction history and could analyse the portfolio itself, based on a neuronal trading model, fundamental and technical data and could offer some recommendations or changes. At the same time it will be used to filter and investigate the news stream in order to find out the important, relevant or similar news to a given and selected set of data, portfolio or stock. Therefore it could be considered as Intelligent Agent or KnowBot.
The results of this unique information system should include the best networks found, accuracy, accuracy trends, recommendations and verification of past recommendations.
If this vison becomes reality, it could be an invitation to a professional portfolio management, should underline the custumer service policy of the company and should prove valuable for the company's market position.
Cryptography
Encryption programs let you turn your text into indecipherable code--and keep your messages safe from prying eyes. But while Pretty Good Privacy's (PGP)  encryption software has been around since 1991, using it to secure your messages was a complex and arduous task.
PGP uses a public-key encryption scheme to keep files safe. Public-key encryption requires a pair of keys: a public key and a private key. Each key is useless without the other (not unlike the dual-key system used for safe deposit boxes). So if Bill wants to send an encrypted message to Hillary, he must use Hillary's public key (which can be downloaded by anyone from a special key server). Once encrypted, the message can be decrypted by Hillary only, using her private key.
Public-key systems can also work as a secure digital signature that identifies the sender of a message. For instance, Bill sends an encrypted message to Hillary and "signs" it using his private key. When Hillary receives the message, she can then use Bill's public key to confirm that the message is really from Bill, and not from someone pretending to be Bill.
The global effort to create a common protocol for encrypting email is getting turned on its head. The Internet Engineering Task Force, an international body responsible for adopting Net standards, has dismissed a specification created by RSA Data Security and instead is considering a technology from RSA's archrival, Pretty Good Privacy .
"The truth is that S/MIME is out, as far as the IETF is concerned," said John Noerenberg, chair of the proposed working group considering the PGP technology for the task force. S/MIME, a spec for encrypting and decrypting email, is based on patented technology and trade secrets owned by RSA. Noerenberg said RSA's claims to ownership of both the technology and the S/MIME trademark soured the task force on the specification. "If the IETF had proceeded with S/MIME as a standard, anybody who intended to implement it would be required to license it from RSA," added Noerenberg, who is also director of technology at the Eudora division of Qualcomm, a company that entered into a licensing deal with PGP six months ago. "This is an onerous restriction because it essentially creates a monopoly."
Pretty Good Privacy Inc. , based in San Mateo, is the pioneer and leading provider of applied cryptographic solutions for securing corporate digital assets and protecting individual privacy. PGP is committed to providing the most advanced security products for the digital age, safeguarding the communication and storage of information. With over 4 million users in 50 countries, and translations into 25 languages, PGP is the worldwide de facto standard for Internet email and file encryption.
The group backing the specification, dubbed Open PGP, recently submitted a proposed charter that will be voted on within the next two weeks, said Jeff Schiller, who heads up security issues for the Internet standards body. He said the IETF would announce by next month whether the Open PGP working group will be accepted. Once the working group is approved, Open PGP could become an official standard within two years, Noerenberg said. An open standard would allow Internet users to seamlessly exchange encrypted email with people using different programs. Currently, incompatibilities between programs often make that impossible.
Because PGP will claim no proprietary rights to its technology, the chances that Open PGP will become an official standard are high, according to Charles Breed, PGP's director of technology. "In order for this thing to take off, you need an open, unencumbered specification," he said. "Now the industry can stand back and say the standard isn't controlled by any one company."
Because of the special and contestable position of a given company in this area of discount broking, portfolio management and information service in the beginning cyberage, it seems to be very important and understandable, to underline especially the safety and custumer policy by trusting only on the best security meassures and hardest hardest cryptography without backdoor.
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