Let's kick the tires
This final section introduces the key elements of the training and classification workflow. A test case using a simple logistic regression is used to illustrate each step of the computational workflow.
Writing a simple workflow
The book relies on financial data in order to experiment with different learning strategies. The objective of the exercise is to build a model that can discriminate between volatile and non-volatile trading sessions for stock or commodities. For the first example, we have selected a simplified version of the binomial logistic regression as our classifier, as we treat stock price-volume action as a continuous or pseudo-continuous process.
Introduction to logistic regression
Logistic regression is treated ...