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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

Summary

This chapter started with how word embeddings encode semantics for individual tokens more effectively than the bag-of-words model that we used in Chapter 13, Working with Text Data. We also saw how to evaluated embedding by validating if semantic relationships among words are properly represented using linear vector arithmetic.

To learn word embeddings, we use shallow neural networks that used to be slow to train at the scale of web data containing billions of tokens. The word2vec model combines several algorithmic innovations to dramatically speed up training and has established a new standard for text feature generation. We saw how to use pretrained word vectors using spaCy and gensim, and learned to train our own word vector embeddings. We then applied a word2vec model to SEC filings. Finally, we covered the doc2vec extension that learns vector representations for documents...

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