Introduction

Artificial Intelligence surrounds us, it has become an inherent part of our everyday lives — whether we’re aware or not. Digital AI bots are the mechanism for almost everything we experience on the apps we use daily. From Netflix to the Instagram explore page, all the recommendations and pictures on our feed, this is AI at work. AI enables social media giants such as Facebook & Twitter to target ads for their clients with extreme precision. AI exists in our homes; smart devices that react to a change in temperature or lighting. During our lifetime, there will be a paradigm…


Introduction

The following is a powerful machine learning solution to portfolio optimization. The goal is to model the portfolio in terms of risk, using principal component analysis, and constrain that risk using convex optimization. This ensemble of machine learning methods effectively neutralizes risk exposures.

  1. Explain the intuition behind PCA
  2. Explain the intuition behind convex optimization
  3. Build a risk model using principal component analysis.
  4. Set up convex optimization, obtaining constraints from risk model.

(disclaimer: this article is not investment advice, it is strictly educational.)

What is Principal Component Analysis?

PCA is an algorithm for performing dimensionality reduction, and identifying/eliminating features with high correlations.

This is especially useful…


Let’s start with an important question: What is Machine Learning?

Machine Learning is a subset of artificial intelligence that uses algorithms to detect patterns and trends in data.

Machine learning can be easily broken down into the following methods; supervised and unsupervised. This article will cover the former, and from there, there are two types of tasks; regression, and classification. This article is a classification task, we want to predict if an NCAA Basketball team will win or lose their next game.

In computer science, an algorithm is a sequence of commands the computer is programmed to follow. In machine…


What is Momentum trading?

Momentum is one of the most prevalent technical indicators used in quantitative trading. Momentum is simply the rate of change, in the price of a security, over a specified time period. Momentum investors seek to capitalize on short-term positions, buying stocks as they go up, and selling them as they start trending down. Note — this is a stark contrast from the renowned “buy low, sell high” investment strategy.

Candlestick Momentum Outline

Joe Sasson

Machine Learning Consultant @ Ashling Partners. Passionate about innovation, problem solving, and learning.

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