Applied Machine Learning for Quantitative Trading

Abstract

There can be no doubt that automated trading algorithms account for a significant share of trading volume on today’s financial markets. This “Focus On” explores one specific approach to quantitative trading using machine learning. While no claim can be made that machine learning will necessarily outperform more classic approaches or a human trader it makes sense for every financial market professional to grasp at least the basics of machine learning. Specifically this short article aims at demonstrating how straightforward it is nowadays to incorporate machine learning approaches into an investment decision process.