Book

Machine Learning for Algorithmic Trading

This thoroughly revised and expanded second edition demonstrates on over 800 pages how machine learning can add value to algorithmic trading in a practical yet comprehensive way. It has four parts that cover how to work with a diverse set of market, fundamental, and alternative data sources, design ML solutions for real-world trading challenges, and manage the strategy development process from idea to backtesting and evaluation.

Offered byPackt Logo

Difficulty Level

Intermediate

Completion Time

27h24m

Language

English

About Book

Who Is This Book For?

If you are a data analyst, data scientist, Python developer, investment analyst, or portfolio manager interested in getting hands-on machine learning knowledge for trading, this book is for you. This book is for you if you want to learn how to extract value from a diverse set of data sources using machine learning to design your own systematic trading strategies. Some understanding of Python and machine learning techniques is required.

Book content

chapters 27h24m total length

Machine Learning for Trading – From Idea to Execution

Market and Fundamental Data – Sources and Techniques

Alternative Data for Finance – Categories and Use Cases

Financial Feature Engineering – How to Research Alpha Factors

Portfolio Optimization and Performance Evaluation

The Machine Learning Process

Linear Models – From Risk Factors to Return Forecasts

The ML4T Workflow – From Model to Strategy Backtesting

Time-Series Models for Volatility Forecasts and Statistical Arbitrage

Bayesian ML – Dynamic Sharpe Ratios and Pairs Trading

Random Forests – A Long-Short Strategy for Japanese Stocks

Boosting Your Trading Strategy

Data-Driven Risk Factors and Asset Allocation with Unsupervised Learning

Text Data for Trading – Sentiment Analysis

Topic Modeling – Summarizing Financial News

Word Embeddings for Earnings Calls and SEC Filings

Deep Learning for Trading

CNNs for Financial Time Series and Satellite Images

RNNs for Multivariate Time Series and Sentiment Analysis

Autoencoders for Conditional Risk Factors and Asset Pricing

Generative Adversarial Networks for Synthetic Time-Series Data

Deep Reinforcement Learning – Building a Trading Agent

Conclusions and Next Steps

Appendix – Alpha Factor Library

Related Resources

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