Machine Learning for Trading – From Idea to Execution
Algorithmic trading relies on computer programs that execute algorithms to automate some or all elements of a trading strategy. Algorithms are a sequence of steps or rules designed to achieve a goal. They can take many forms and facilitate optimization throughout the investment process, from idea generation to asset allocation, trade execution, and risk management.
Machine learning (ML) involves algorithms that learn rules or patterns from data to achieve a goal such as minimizing a prediction error. The examples in this book will illustrate how ML algorithms can extract information from data to support or automate key investment activities. These activities include observing the market and analyzing data to form expectations about the future and decide on placing buy or sell orders, as well as managing the resulting portfolio to produce attractive returns relative to the risk.
Ultimately, the goal...
