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Hands-On Machine Learning for Algorithmic Trading

You're reading from   Hands-On Machine Learning for Algorithmic Trading Design and implement investment strategies based on smart algorithms that learn from data using Python

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Product type Paperback
Published in Dec 2018
Publisher Packt
ISBN-13 9781789346411
Length 684 pages
Edition 1st Edition
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Authors (2):
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Jeffrey Yau Jeffrey Yau
Author Profile Icon Jeffrey Yau
Jeffrey Yau
Stefan Jansen Stefan Jansen
Author Profile Icon Stefan Jansen
Stefan Jansen
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Table of Contents (23) Chapters Close

Preface 1. Machine Learning for Trading 2. Market and Fundamental Data FREE CHAPTER 3. Alternative Data for Finance 4. Alpha Factor Research 5. Strategy Evaluation 6. The Machine Learning Process 7. Linear Models 8. Time Series Models 9. Bayesian Machine Learning 10. Decision Trees and Random Forests 11. Gradient Boosting Machines 12. Unsupervised Learning 13. Working with Text Data 14. Topic Modeling 15. Word Embeddings 16. Deep Learning 17. Convolutional Neural Networks 18. Recurrent Neural Networks 19. Autoencoders and Generative Adversarial Nets 20. Reinforcement Learning 21. Next Steps 22. Other Books You May Enjoy

Learning from data

There have been many definitions of ML, which all revolve around the automated detection of meaningful patterns in data. Two prominent examples include:

  • AI pioneer Arthur Samuelson defined ML in 1959 as a subfield of computer science that gives computers the ability to learn without being explicitly programmed.
  • Toni Mitchell, one of the current leaders in the field, pinned down a well-posed learning problem more specifically in 1998: a computer program learns from experience with respect to a task and a performance measure whether the performance of the task improves with experience.

Experience is presented to an algorithm in the form of training data. The principal difference to previous attempts at building machines that solve problems is that the rules that an algorithm uses to make decisions are learned from the data as opposed to being programmed or...

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