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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 FREE CHAPTER 2. Market and Fundamental Data 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

Latent semantic indexing

Latent Semantic Indexing (LSI, also called Latent Semantic Analysis) sets out to improve the results of queries that omitted relevant documents containing synonyms of query terms. It aims to model the relationships between documents and terms to be able to predict that a term should be associated with a document, even though, because of variability in word use, no such association was observed.

LSI uses linear algebra to find a given number, k, of latent topics by decomposing the DTM. More specifically, it uses Singular Value Decomposition (SVD) to find the best lower-rank DTM approximation using k singular values and vectors. In other words, LSI is an application of the unsupervised learning techniques of dimensionality reduction we encountered in Chapter 12, Unsupervised Learning to the text representation that we covered in Chapter 13, Working with...

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