Machine Learning and Trading Assets

Overview

Most of the techniques used to analyze market behaviour are drawn from standard statistics. In particular, OLS regression has become a workhorse of the financial quant community.

However, machine learning has made inroads into trading, in particular, in the trade patterns that are not easily captured by traditional techniques.

Deep Learning

Deep Learning is the most prominent of the machine learning techniques used in formulating trading decisions. They can be used to capture non-linear patterns in data that are not easily formalated as a standard regression problem.

For information about deep learning models and trading, please see:

Deep Learning Trade Analysis