I have to make a forecast about one variable and I use some different methods to do so. I would try a nonlinear alternative also and I would to consider the Artificial Neural Network (ANN) models.
I have many predictors and I know that about linear models make no selection among them is not a good idea, because in this case become highly probable to encounter in overfitting. I don't know if with ANN the same is true, maybe overfitting occur primarily if we use too many hidden layers and/or nodes.
However I would to use some reduction/selection rule also. Now, I know that PCA is one possible technique for data reduction. Actually I have more that 130 predictors but with less than 30 component (after standardization) I capture more than 70% of total variability. I can use these components as predictors but my point is the follow.
I know that ANN is more effective if there are highly nonlinear links between predictors and predicted variable. Now, the PC are a linear combinations of predictors and then I fear that components that contain the most part of variability tend to obscure the nonlinear relations. If this is true seems me that PCA is not a great idea for reduce the number of predictors in ANN model. This is true?
If it is, what method is preferable as variables selection and or reduction for ANN? To use all predictors that I have is better?