I’ve always maintained that stocks follow repeatable patterns in the short term and a computer should be able to exploit that fairly easily, which is why I’ve always preferred the idea of using pattern recognition over technical analysis in my next automated trading platform.
I needed to have a grasp of the basics of machine learning and data mining which is why I started reading Programming Collective Intelligence.
There are a couple of ideas that I’ve been throwing around in my head—applying pattern recognition and machine learning to financial data—I’m going to use Orange to play with these ideas a little further and I hope, eventually develop a trading strategy.
Having finished PCI, I’m also ready for something more theoretical, so I’ve bought a copy of Introduction to Data Mining– I’ll read the book over the next few weeks while following along Stanford’s Stats 202 course syllabus, watching their videos and hopefully, form a deeper understanding of which machine learning algorithms to apply to this domain.
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Aah! the holy grail… you’re too little and too late. There is good reason why statisticians don’t live in mansions.
Aleem Bawany - 14 Apr 09 at 11:35 pm