Algorithmic trading using deep learning is garbage?
Introduction
In this video, Lucas from Country discusses the mistake to avoid when creating a deep learning algorithmic trading strategy.
Creating a Deep Learning Algorithmic Trading Strategy
- The financial data contains a lot of noise, making it difficult for the algorithm to find the global minimum.
- When training a neural network using stochastic gradient descent, the initial weights are randomly initialized and can lead to different performance results.
Solutions to Fix the Issue
- One solution is shown in Lucas' course "Deep Learning for Algorithmic Trading."
- Other solutions can be discussed in future videos upon request.
Overall, it's important to be careful when using deep learning for algorithmic trading due to these issues with financial data and stochastic initialization weight.