Hands-On Machine Learning for Algorithmic Trading

The rise of ML in the investment industry

The investment industry has evolved dramatically over the last several decades and continues to do so amid increased competition, technological advances, and a challenging economic environment. This section will review several key trends that have shaped the investment environment in general, and the context for algorithmic trading more specifically, and related themes that will recur throughout this book.

The trends that have propelled algorithmic trading and ML to current prominence include:

• Changes in the market microstructure, such as the spread of electronic trading and the integration of markets across asset classes and geographies
• The development of investment strategies framed in terms of ...