Trading Using Machine Learning In Python Part-2
At the end of my last blog, I had asked a few questions. Now, I will answer them all at the same time. I will also discuss a way to detect the regime/trend in the market without training the algorithm for trends. But before we go ahead, please use a fix to fetch the data from Google to run the code below.
Is the equation over-fitting?
This was the first question I had asked. To know if your data is overfitting or not, the best way to test it would be to check the prediction error that the algorithm makes in the train and test data.
To do this, we will have to add a small piece of code to the already written code.
First, let me begin my explanation by apologizing for breaking the norms: going beyond the 80 column mark.
Second, if we run this piece of code, then the output would look so…
Read more: http://ow.ly/noNd30cJqle