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Machine Learning for Finance

You're reading from   Machine Learning for Finance Principles and practice for financial insiders

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Product type Paperback
Published in May 2019
Publisher Packt
ISBN-13 9781789136364
Length 456 pages
Edition 1st Edition
Languages
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Authors (2):
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Jannes Klaas Jannes Klaas
Author Profile Icon Jannes Klaas
Jannes Klaas
James Le James Le
Author Profile Icon James Le
James Le
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Table of Contents (15) Chapters Close

Machine Learning for Finance
Contributors
Preface
Other Books You May Enjoy
1. Neural Networks and Gradient-Based Optimization 2. Applying Machine Learning to Structured Data FREE CHAPTER 3. Utilizing Computer Vision 4. Understanding Time Series 5. Parsing Textual Data with Natural Language Processing 6. Using Generative Models 7. Reinforcement Learning for Financial Markets 8. Privacy, Debugging, and Launching Your Products 9. Fighting Bias 10. Bayesian Inference and Probabilistic Programming Index

The modularity tradeoff


This chapter has shown that it is possible, and often useful, to aid a machine learning model with some rule-based system. You might also have noticed that the images in the dataset were all cropped to show only one plant.

While we could have built a model to locate and classify the plants for us, in addition to classifying it, we could have also built a system that would output the treatment a plant should directly receive. This begs the question of how modular we should make our systems.

End-to-end deep learning was all the rage for several years. If given a huge amount of data, a deep learning model can learn what would otherwise have taken a system with many components much longer to learn. However, end-to-end deep learning does have several drawbacks:

  • End-to-end deep learning needs huge amounts of data. Because models have so many parameters, a large amount of data is needed in order to avoid overfitting.

  • End-to-end deep learning is hard to debug. If you replace...

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