Book Image

Machine Learning for Finance

By : Jannes Klaas
Book Image

Machine Learning for Finance

By: Jannes Klaas

Overview of this book

Machine Learning for Finance explores new advances in machine learning and shows how they can be applied across the financial sector, including insurance, transactions, and lending. This book explains the concepts and algorithms behind the main machine learning techniques and provides example Python code for implementing the models yourself. The book is based on Jannes Klaas’ experience of running machine learning training courses for financial professionals. Rather than providing ready-made financial algorithms, the book focuses on advanced machine learning concepts and ideas that can be applied in a wide variety of ways. The book systematically explains how machine learning works on structured data, text, images, and time series. You'll cover generative adversarial learning, reinforcement learning, debugging, and launching machine learning products. Later chapters will discuss how to fight bias in machine learning. The book ends with an exploration of Bayesian inference and probabilistic programming.
Table of Contents (15 chapters)
Machine Learning for Finance
Contributors
Preface
Other Books You May Enjoy
Index

A quick tour of the Keras functional API


So far, we've used sequential models. In the sequential model, layers get stacked on top of each other when we call model.add(). The advantage of the functional API is that it is simple and prevents errors. The disadvantage is that it only allows us to stack layers linearly:

GoogLeNet Architecture from Szegedy and others' "Going Deeper with Convolutions"

Take a look at the preceding GoogLeNet architecture. While the graph is very detailed, what we need to take away is the fact that the model is not just a number of layers stacked on top of each other. Instead, there are multiple layers in parallel; in this case, the model has three outputs. However, the question remains, how did the authors build this complicated model? The sequential API wouldn't have allowed them to, but the functional API makes it easy to string up layers like a pearl string and create architectures such as the preceding one.

For many NLP applications, we need more complex models...