CONTENTS

REPORT ON:
GENETIC ALGORITHM





SUBMITTED TO: SUBMITTED BY:
PROF. K.K.TRIPATHI MAITREE RASTOGI
EC-C 3
RD
YR.

ACKNOWLEDGEMENT

I have taken efforts in this project. However,
it would not have been possible without the
kind support and help of many individuals
and organizations. I would like to extend my
sincere thanks to all of them.
I am highly indebted to Prof. K.K. Tripathi for
his guidance and constant supervision as
well as for providing necessary information
regarding the project & also for their support
in completing the project.
I would like to express my gratitude towards
my parent for their kind co-operation and
encouragement which help me in
completion of this report.

My thanks and appreciations also go to
people who have willingly helped me out
with their abilities.



TABLE OF CONTENTS

1. INTRODUCTION
2. WHAT IS GA?
3. HOW GA WORKS?
4. KEYPOINTS
5. APPLICATIONS
6. ADVANTAGES
7. SHORTCOMINGS
8. CONCLUSION
9. REFERENCES


INTRODUCTION
The USE of genetic algorithms (GA) for problem solving is not new.
The pioneering work of J. H. Holland in the 1970s proved to be a
significant contribution for scientific and engineering applications.
Since then, the output of research work in this field has grown
exponentially although the contributions have been, and are largely
initiated, from academic institutions world-wide. It is only very
recently that we have been able to acquire some material that
comes from industry. The concept of this is somehow not clearly
understood. However, the obvious obstacle that may drive engineers
away from using GA is the difficulty of speeding up the
computational process, as well as the intrinsic nature of randomness
that leads to a problem of performance assurance.
Furthermore, the GA is not considered a mathematically guided
algorithm. The optima obtained is evolved from generation to
generation without stringent mathematical formulation such as the
traditional gradient-type of optimizing procedure. In fact, GA is much
different in that context. It is merely a stochastic, discrete event and
a nonlinear process. The obtained optima is an end product
containing the best elements of previous generations where the
attributes of a stronger individual tend to be carried forward into the
following generation. The rule of the game is survival of the fittest
will win.





Reproductio
Competition
Selection Survive


The genetic algorithm differs from a classical, derivative-based,
optimization algorithm in two main ways, as summarized in the
following table.

Classical Algorithm Genetic Algorithm
Generates a single point at
each iteration. The sequence
of points approaches an
optimal solution.
Generates a population of points
at each iteration. The best point
in the population approaches an
optimal solution.
Selects the next point in the
sequence by a deterministic
computation.
Selects the next population by
computation which uses random
number generators.










What Are Genetic Algorithms?
Genetic algorithms (GAs) are problem solving methods (or heuristics)
that mimic the process of natural evolution. Unlike artificial neural
networks (ANNs), designed to function like neurons in the brain,
these algorithms utilize the concepts of natural selection to
determine the best solution for a problem. As a result, GAs are
commonly used as optimizers that adjust parameters to minimize or
maximize some feedback measure, which can then be used
independently.
GA mimics all the processes based on the concept of natural
evolution to find the optimum solution to the given problem residing
in the search space. The GA pool contains a number of individuals
called chromosomes. Each chromosome encoded from the
parameters holds the potential solution. According to the
evolutionary theories, the chromosomes which only have a good
fitness are likely to survive and to generate the offspring and pass its
strength to them by the genetic operator.
How Genetic Algorithms Work
Genetic algorithms are created mathematically using vectors, which
are quantities that have direction and magnitude. Parameters for
each trading rule are represented with a one-dimensional vector that
can be thought of as a chromosome in genetic terms. Meanwhile,
the values used in each parameter can be thought of as genes, which
are then modified using natural selection.

For example, a trading rule may involve the use of parameters
like Moving Average Convergence-Divergence (MACD), Exponential
Moving Average (EMA) and Stochastic. A genetic algorithm would
then input values into these parameters with the goal of maximizing
net profit. Over time, small changes are introduced and those that
make a desirably impact are retained for the next generation.

There are three types of genetic operations that can then be
performed:
Crossovers
Represent the reproduction and biological crossover seen in
biology, whereby a child takes on certain characteristics of its
parents.
Single point crossover




Two point crossover (Multi point crossover)













Mutations
Represent biological mutation and are used to maintain genetic
diversity from one generation of a population to the next by
introducing random small changes.





Selections
Are the stage at which individual genomes are chosen from a
population for later breeding (recombination or crossover).






These three operators are then used in a five-step process:
1. Initialize a random population, where each chromosome is n-
length, with n being the number of parameters. That is, a
random number of parameters are established within elements
each.
2. Select the chromosomes, or parameters, that increase
desirable results (presumably net profit).
3. Apply mutation or crossover operators to the selected parents
and generate an offspring.
4. Recombine the offspring and the current population to form a
new population with the selection operator.
5. Repeat steps two to four.
Over time, this process will result in increasingly favourable
chromosomes (or, parameters) for use in a trading rule. The process
is then terminated when a stopping criteria is met, which can include
running time, fitness, number of generations or other criteria.







APPLICATIONS
Using Genetic Algorithms in:
Trading

While genetic algorithms are primarily used by
institutional quantitative Traders, individual traders can harness the
power of genetic algorithms - without a degree in advanced
mathematics - using several software packages on the market. These
solutions range from standalone software packages geared towards
the financial markets to Microsoft Excel add-ons that can facilitate
more hands-on analysis.

When using these applications, traders can define a set of
parameters that are then optimized using a genetic algorithm and a
set of historical data. Some applications can optimize which
parameters are used and the values for them, while others are
primarily focused on simply optimizing the values for a given set of
parameters.

VLSI
A genetic algorithm for the physical design of VLSI-chips is presented.
The algorithm simultaneously optimizes the placement of the cells
with the total routing. During the placement the detailed routing is
done, while the global routes are optimized by the genetic algorithm.

FILTER DESIGN
Morphological filters are an important class of non-linear digital
signal processing and analysis filters, having found a range of
applications, giving excellent results in areas such as noise reduction,
edge detection and object recognition. However, design methods
existing for these morphological filters tend to be computationally
intractable or require some expert knowledge of mathematical
morphology.simple genetic algorithms can be employed in the
search for optimum morphological filters for specific signal/image
processing tasks.
Robotics
The application of GA in robotics has found a use in robot navigating
systems. Considering that such navigation is the art of directing a
course for a mobile robot to traverse in a restricted environment,
this navigation scheme should then be designed to cope with such
constraints, so that the robot is capable of reaching its desired
destination without getting lost or crashing into any objects.

Game Playing
Genetic algorithms to find the solution of game theory. We proposed
new method for solving game theory and find the optimal strategy
for player A or player B.

MATLAB
You can apply the genetic algorithm to solve problems that are not
well suited for standard optimization algorithms, including problems
in which the objective function is discontinuous, non-differentiable,
stochastic, or highly nonlinear. A GA Toolbox was developed for
MATLAB [87]. This is GA software which is easy to use, practical, and
efficient. It provides a platform for modelling, design, and simulation
with an interactive environment and the associated graphical facility.

FACE DETECTION
A Face-print system was designed in New Mexico State University
[for reproducing the feature of a suspected criminals face. A binary
chromosome is used to code the five facial features (mouth, hair,
eyes, nose, and chin) of a face. Initially, 20 suspects faces are
generated on a computer screen. A witness can then rate each face
on a 10-point subjective scale. GA takes that information and follows
the evolution cycle to obtain the optimal solution
Control
For its use in control systems engineering, GA can be applied to a
number of control methodologies for the improvement of the overall
system performance. In most of the controller designs, some
parameters are required to be optimized in order to give a better
overall control performance. Furthermore, the configuration or the
order of the controller may be optimized to reduce the system
complexity.
Speech Recognition
In an automatic speech recognition system, the spoken speech
patterns (test pattern) are usually identified with the pre stored
speech patterns (reference patterns). The comparison of speech
signals has a number of difficulties as variations in time and the time
scales among them are not fixed. Therefore, time registration of the
test and the reference patterns is one of the fundamental problems
in the area of automatic isolated word recognition.




ADVANTAGES OF GA:

Some insight into why GA has become more and more popular
should be given. GA is attractive for a number of reasons.

It can handle problem constraints by simply embedding them
into this chromosome coding.
Multi-objective problem can be addressed by means of the
approach.
Since it is a technique independent of the error surface, it is
ready to solve multimodal, non-differentiable, non-continuous,
or even NP-complete problems.
Structured GA provides a tool to optimize the topology or the
structure in parallel with the parameters of the solution for a
particular problem.
It is a very easy-to-understand technique with very few (or
even none) mathematics.
It can be easily interfaced to existing simulations and models.





SHORTCOMINGS OF
GENETIC ALGORITHM
Of course, there are some things that GA just cannot or finds difficult
to do. The following three phenomena are often encountered.
Deception
Some objective functions may be very difficult to optimize by GA.
Such functions are referred as GA-deceptive functions.
Genetic Drift (Bias)
There is no guarantee of obtaining the global optimal point by using
GA although it has the tendency to do so. This possibility is reduced if
there is a loss of population diversity. As CA seeks out a suboptimal
point, the population may converge toward this point and premature
convergence occurs. In this case, the global optimal solution can only
be obtained by the exploration of mutation in the genetic
operations. Such a phenomenon is known as genetic drift.
Real-Time and On-Line Issues
Similar to the other artificial intelligence (AI) techniques and
heuristics, the GA is not suited for analyses that would provide
guaranteed response times. Moreover, the variance of the response
time for a GA system is much larger than the conventional methods.
This unfavourable nature limits the use of GA in the real-time
problem.


CONCLUSION
An attempt to outline the features of GA in terms of the genetic
functionality of operators, the problem formulation, the inherent
capability of GA for solving complex and conflicting problems, as well
as its various practical applications, is given in this paper. The theme
is oriented from an industrial application basis. The papers purpose
is to introduce this emerging technology to engineers who may have
little or no knowledge of CA. It is also reasonable to believe that this
article contains sufficient, useful material to encourage and awaken
the interest to newcomers, so that GA may be implemented to solve
their practical problems. What remains as a challenge to GA is
undoubtedly the real- time and adaptive capability. The real-time
issue is not so much hinged on the computing speed, since the
parallelism of GA should improve the computational speed quite
considerably and comfortably.
The integration of CA with other emerging technology such as neural
networks and fuzzy logic systems could be another challenging area.
The combination of these emerging technologies may not only
involve applying GA as a helper to these two, but could result in the
emerging technologies being able to assist GA applications. Different
combinations may offer us a fruitful result in intelligent system
design. All in all, the knowledge generated from GA over the last 20
or so years has now become mature. The prospect of applying GA for
practical applications is good. A considerable growth in the
application GA, particularly in the field of industrial electronics, is
anticipated for the future.




REFERENCES
1) www.wikipedia.com
2) www.google.com
3) www.scribed.com
4) www.investopedia.com
5) www.mathworks.com
6) www.sciencedirect.com
7) www.ieee.org