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

Convolutional Neural Networks


Convolutional Neural Networks, ConvNets, or CNNs for short, are the driving engine behind computer vision. ConvNets allow us to work with larger images while still keeping the network at a reasonable size.

The name Convolutional Neural Network comes from the mathematical operation that differentiates them from regular neural networks. Convolution is the mathematically correct term for sliding one matrix over another matrix. We'll explore in the next section, Filters on MNIST, why this is important for ConvNets, but also why this is not the best name in the world for them, and why ConvNets should, in reality, be called filter nets.

You may be asking, "but why filter nets?" The answer is simply because what makes them work is the fact that they use filters.

In the next section, we will be working with the MNIST dataset, which is a collection of handwritten digits that has become a standard "Hello, World!" application for computer vision.

Filters on MNIST

What does...