Book Image

Scala for Machine Learning, Second Edition - Second Edition

Book Image

Scala for Machine Learning, Second Edition - Second Edition

Overview of this book

The discovery of information through data clustering and classification is becoming a key differentiator for competitive organizations. Machine learning applications are everywhere, from self-driving cars, engineering design, logistics, manufacturing, and trading strategies, to detection of genetic anomalies. The book is your one stop guide that introduces you to the functional capabilities of the Scala programming language that are critical to the creation of machine learning algorithms such as dependency injection and implicits. You start by learning data preprocessing and filtering techniques. Following this, you'll move on to unsupervised learning techniques such as clustering and dimension reduction, followed by probabilistic graphical models such as Naïve Bayes, hidden Markov models and Monte Carlo inference. Further, it covers the discriminative algorithms such as linear, logistic regression with regularization, kernelization, support vector machines, neural networks, and deep learning. You’ll move on to evolutionary computing, multibandit algorithms, and reinforcement learning. Finally, the book includes a comprehensive overview of parallel computing in Scala and Akka followed by a description of Apache Spark and its ML library. With updated codes based on the latest version of Scala and comprehensive examples, this book will ensure that you have more than just a solid fundamental knowledge in machine learning with Scala.
Table of Contents (27 chapters)
Scala for Machine Learning Second Edition
Credits
About the Author
About the Reviewers
www.PacktPub.com
Customer Feedback
Preface
Index

GA for trading strategies


Let's apply our fresh expertise in genetic algorithms to evaluating different strategies to trade securities using trading signals. Knowledge of trading strategies is not required to understand the implementation of a GA. However, you may want to get familiar with the foundation and terminology of the technical analysis of securities and financial markets, described briefly in the Technical analysis section of the Appendix.

The problem is to find the best trading strategy to predict the increase or decrease of the price of a security given a set of trading signals. A trading strategy is defined as a set of trading signals tsj that are triggered or fired when a variable x= {xj }, derived from financial metrics such as the price of the security or the daily or weekly trading volume, exceeds, equals, or is below a predefined target value, aj (refer to the Trading signals and strategy section of the Appendix).

The number of variables that can be derived from the price...