Implementing Machine Learning for Finance: A Systematic Approach to Predictive Risk and Performance Analysis for Investment Portfolios

© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2021

T. C. NokeriImplementing Machine Learning for Financehttps://doi.org/10.1007/978-1-4842-7110-0_8

8. Market Trend Classification Using ML and DL

Tshepo Chris Nokeri¹  

(1)

Pretoria, South Africa

 

Thus far, we have progressively introduced the parametric method. All the problems we solved involved a continuous variable. We can also make use of the nonparametric method to predict the possible direction of the market. This chapter presents the nonparametric (or nonlinear) method, also called the classification method. This prevalent method operates on independent variables and triggers a bounded value. It is suitable when dealing with a categorical dependent variable ...