Sign In Start Free Trial
Account

Add to playlist

Create a Playlist

Modal Close icon
You need to login to use this feature.
  • Book Overview & Buying Machine Learning for Finance
  • Table Of Contents Toc
  • Feedback & Rating feedback
Machine Learning for Finance

Machine Learning for Finance

By : James Le , Jannes Klaas
4.1 (59)
close
close
Machine Learning for Finance

Machine Learning for Finance

4.1 (59)
By: James Le , Jannes Klaas

Overview of this book

Machine Learning for Finance explores new advances in machine learning and shows how they can be applied across the financial sector, including insurance, transactions, and lending. This book explains the concepts and algorithms behind the main machine learning techniques and provides example Python code for implementing the models yourself. The book is based on Jannes Klaas’ experience of running machine learning training courses for financial professionals. Rather than providing ready-made financial algorithms, the book focuses on advanced machine learning concepts and ideas that can be applied in a wide variety of ways. The book systematically explains how machine learning works on structured data, text, images, and time series. You'll cover generative adversarial learning, reinforcement learning, debugging, and launching machine learning products. Later chapters will discuss how to fight bias in machine learning. The book ends with an exploration of Bayesian inference and probabilistic programming.
Table of Contents (15 chapters)
close
close
Machine Learning for Finance
Contributors
Preface
Other Books You May Enjoy
Index

Chapter 7. Reinforcement Learning for Financial Markets

Humans don't learn from millions of labeled examples. Instead, we often learn from positive or negative experiences that we associate with our actions. Children that touch a hot stove once will never touch it again. Learning from experiences and the associated rewards or punishments is the core idea behind reinforcement learning (RL). RL allows us to learn sophisticated decision-making rules while having no data at all. Through this approach, several high-profile breakthroughs occurred in AI, such as AlphaGo, which beat the world Go champion in 2016.

In finance, reinforcement learning, also known as RL, is making inroads as well. In its 2017 report, Machine learning in investment management (https://www.ahl.com/machine-learning), Man AHL outlined a reinforcement system for order routing in the FX and futures market. Order routing is a classic problem in quantitative finance. When placing an order, funds can usually choose from different...

Unlock full access

Continue reading for free

A Packt free trial gives you instant online access to our library of over 7000 practical eBooks and videos, constantly updated with the latest in tech

Create a Note

Modal Close icon
You need to login to use this feature.
notes
bookmark search playlist download font-size

Change the font size

margin-width

Change margin width

day-mode

Change background colour

Close icon Search
Country selected

Close icon Your notes and bookmarks

Delete Bookmark

Modal Close icon
Are you sure you want to delete it?
Cancel
Yes, Delete

Delete Note

Modal Close icon
Are you sure you want to delete it?
Cancel
Yes, Delete

Edit Note

Modal Close icon
Write a note (max 255 characters)
Cancel
Update Note

Confirmation

Modal Close icon
claim successful

Buy this book with your credits?

Modal Close icon
Are you sure you want to buy this book with one of your credits?
Close
YES, BUY