In 2014 the Robinhood Commission-free trading app opened up for business. I eagerly signed up, put money in, and imprudently bought a few high-tech biotech stocks that caught my eye. One year later, my hastily scraped together portfolio was down 40%. Fast forward 4 years later, and now I set to apply quantitative techniques to determine stock price direction in order to turn a profit.
Goals
This post will teach the reader how to apply ML techniques to predict stock price direction. In addition, it will shed light on how to use the repositorys backtesting module for use with your own algorithms.
High School Math → Machine Learning
Mostly everyone in high school had some sort of class where they took observations (maybe measuring the height of a plant over time in biology class).
Here is an example of plant height data.
