Using a Keras Long Short-Term Memory Model to Predict Stock Prices

Re:Using a Keras Long Short-Term Memory Model to Predict Sto... by goodside on Friday November 09, 2018 @04:04PM (#18418015)

Less so. Log-normal returns are better because they have the property that a summation of log-normal returns over contiguous intervals is equal to the log-normal returns of the combined interval. In other words: Losing 5% and then gaining 5% doesn’t put you back at exactly 100%, and log-normal fixes that.

[ Parent | on HN ]

Re:Using a Keras Long Short-Term Memory Model to Predict Sto... by theothermkn on Friday November 09, 2018 @10:01PM (#18419682)

In the extreme, two successive trades, where the first gains 110% and the second loses 100%, “average” out to a 5% return. However, you don’t want to make that pair of trades.

[ Parent | on HN ]

Re:Using a Keras Long Short-Term Memory Model to Predict Sto... by ak39 on Friday November 09, 2018 @11:39PM (#18419976)

Ah, that makes sense. Many thanks.

[ Parent | on HN ]