Coding a random forest algorithm to predict the S&P500’s daily direction through the Put/Call ratio.
Main idea of the article: We will create a random forest algorithm that predicts the Put/Call ratio’s direction for tomorrow. Using that information, we will try to predict tomorrow’s return for the S&P500. Hence, we will not predict the direction of the equity market, rather we will try to predict the direction of a time series that is correlated to the S&P500.
But first things first, a call option is the right to buy a certain asset in the future at a determined price while a put option is the right to sell a certain asset in the future at a pre-determined price.
Artificial Intelligence (AI) vs Machine Learning vs Deep Learning vs Data Science: Artificial intelligence is a field where set of techniques are used to make computers as smart as humans. Machine learning is a sub domain of artificial intelligence where set of statistical and neural network based algorithms are used for training a computer in doing a smart task. Deep learning is all about neural networks. Deep learning is considered to be a sub field of machine learning. Pytorch and Tensorflow are two popular frameworks that can be used in doing deep learning.
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7 Types of Data Bias in Machine Learning. Data bias can occur in a range of areas, from human reporting and selection bias to algorithmic and interpretation bias.
Most popular Data Science and Machine Learning courses — August 2020. This list was last updated in August 2020 — and will be updated regularly so as to keep it relevant
In this article, I clarify the various roles of the data scientist, and how data science compares and overlaps with related fields such as machine learning, deep learning, AI, statistics, IoT, operations research, and applied mathematics.