Fractionally Differentiated Features

Fractionally Differentiated Features

Reading & Note-Taking from Advances in Financial Machine Learning by Marcos Prado Chapter 5. Fractional differentiation (or Fractional derivative or Fractional calculus) is a great idea once you understood all the equations.

Introduction

Fractional differentiation (or Fractional derivative or Fractional calculus) is a great idea once you understood all the equations. But the first time when I was reading Chapter 5 of Advances in Financial Machine Learning by Marcos Prado. All the mathematical symbols and equations just push me away from it.

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I was like, what is this?

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Believe me, if you feel lost, you are not alone. The reactions of most people just like what Homer Simpson said: “If something’s hard to do, then it’s not worth doing.” Luckily, I was one of the most people until now.

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Let’s face it and it wasn’t as hard as it looks like. We can break it down and figure it out step by step with the first principle.

Ok, let’s break down the whole chapter and talk it through.. together, emmm.…I mean together…

machine-learning python finance fractional-calculus marco-prato

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