Things to try
As already mentioned, financial markets are large and complicated. The methods that we’ve tried are just the very beginning. Using RL to create a complete and profitable trading strategy is a large project, which can take several months of dedicated labor. However, there are things that we can try:
- Our data representation is definitely not perfect. We don’t take into account significant price levels (support and resistance), round price values, and others. Incorporating them into the observation could be a challenging problem.
- Market prices are usually analyzed at different timeframes. Low-level data like one-minute bars are noisy (as they include lots of small price movements caused by individual trades), and it is like looking at the market using a microscope. At larger scales, such as one-hour or one-day bars, you can see large, long trends in data movement, which could be extremely important for price prediction.
- More training data is needed....
