Support Vector Machines are an important tool when it comes to Statistical Learning also known as Machine Learning.
Support Vector Machines and Neural Networks are two of the most cutting edge tools in machine learning.
The problem with Neural Networks is that they can get stuck in a local minima.
SVMs (support vector machines) don't have this problem.
There are pros and cons of using SVMs or NNs in any machine learning problem.
As trader we can use SVMs in making predictions.
Everything depends on the choice of input features.
Read this blog post in which I explain how to use SVMs in day trading.
SVMs have some quirks that you need to understand.
They cannot take noisy data.
So it is always a good idea to scale the data.
