A Definitive Guide to Machine Learning for Finance

J.P. Morgan’s quantitative investing and derivatives strategy team, led Marko Kolanovic and Rajesh T. Krishnamachari, has just issued the most comprehensive report ever on machine learning in financial services.

Titled, ‘Big Data and AI Strategies’ and sub headed, ‘Machine Learning and Alternative Data Approach to Investing’, the report says that machine learning will become crucial to the future functioning of markets. Analysts, portfolio managers, traders and chief investment officers all need to become familiar with machine learning techniques. If they don’t they’ll be left behind: traditional data sources like quarterly earnings and GDP figures will become increasingly irrelevant as managers using newer datasets and methods will be able to predict them in advance and to trade ahead of their release.

At 280 pages, the report is too long to cover in detail, but I’ve pulled out the most salient points and put it into a cool infographic :