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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
Languages
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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

Unsupervised Learning

In Chapter 6, Machine Learning Process, we discussed how unsupervised learning adds value by uncovering structures in the data without an outcome variable, such as a teacher, to guide the search process. This task contrasts with the setting for supervised learning that we focused on in the last several chapters.

Unsupervised learning algorithms can be useful when a dataset contains only features and no measurement of the outcome, or when we want to extract information independent of the outcome. Instead of predicting future outcomes, the goal is to study an informative representation of the data that is useful for solving another task, including the exploration of a dataset.

Examples include identifying topics to summarize documents (see Chapter 14, Topic Modeling), reducing the number of features to reduce the risk of overfitting and the computational cost...

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