Hands-On Machine Learning for Algorithmic Trading

How neural language models learn usage in context

Word embeddings result from training a shallow neural network to predict a word given its context. Whereas traditional language models define context as the words preceding the target, word-embedding models use the words contained in a symmetric window surrounding the target. In contrast, the bag-of-words model uses the entirety of documents as context and uses (weighted) counts to capture the cooccurrence of words rather than predictive vectors.

Earlier neural language models that were used included nonlinear hidden layers that increased the computational complexity. Word2vec and its extensions simplified the architecture to enable training on large datasets (Wikipedia, for example, contains ...