Mastering Python for Finance - Second Edition

What is deep learning ?

In Chapter 10, Machine Learning for Finance, we learned how machine learning is useful for making predictions. Supervised learning uses error-minimization techniques to fit a model with training data, and can be regression based or classification based.

Deep learning takes a different approach in making predictions by using a neural network. Modeled on the human brain and the nervous system, an artificial neural network consists of a hierarchy of layers, with each layer made up of many simple units known as neurons, working in parallel and transforming the input data into abstract representations as the output data, which are fed to the next layer as input. The following diagram illustrates an artificial neural network: ...