Hands-On Machine Learning for Algorithmic Trading

Learning from data

There have been many definitions of ML, which all revolve around the automated detection of meaningful patterns in data. Two prominent examples include:

• AI pioneer Arthur Samuelson defined ML in 1959 as a subfield of computer science that gives computers the ability to learn without being explicitly programmed.
• Toni Mitchell, one of the current leaders in the field, pinned down a well-posed learning problem more specifically in 1998: a computer program learns from experience with respect to a task and a performance measure whether the performance of the task improves with experience.

Experience is presented to an algorithm in the form of training data. The principal difference to previous attempts at building machines ...