Section 4: Forecasting the Stock
Market with Machine Learning
4.1 What Does
Research Tell Us about the Stock Market?
Research is the most important thing before we start working
on designing a strategy.
·
Study the market and understand it.
·
Understand different forms of the market.
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4.2 Developing a Trading Strategy
Once you have studied the various aspects of the market, it
is time to develop a trading strategy. You will learn it in this video.
·
Read and plot data.
·
Pull data for various statistical values.
·
Extend the time span.
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4.3 Building a Model
and Evaluating Its Performance
Now that we have our baseline, we will build our first
regression model for prediction of stocks.
·
Set up a dataframe. Import SVM and set training
and testing datasets.
·
Fit the model. Compare with the actual data.
·
Evaluate the performance by adjusting the
different parameters till the desired result is met.
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4.4 Modeling with
Dynamic Time Warping
Another algorithm to work with is dynamic time warping. It
provides us a metric which will inform us about the similarity between two time
series.
·
Calculate the distance between two time series.
·
Compare a series against all other series and
infer.
·
Evaluate trades.
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Section 5
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