Discussing the article: "Data Science and Machine Learning (Part 17): Money in the Trees? The Art and Science of Random Forests in Forex Trading"

 

Check out the new article: Data Science and Machine Learning (Part 17): Money in the Trees? The Art and Science of Random Forests in Forex Trading.

Discover the secrets of algorithmic alchemy as we guide you through the blend of artistry and precision in decoding financial landscapes. Unearth how Random Forests transform data into predictive prowess, offering a unique perspective on navigating the complex terrain of stock markets. Join us on this journey into the heart of financial wizardry, where we demystify the role of Random Forests in shaping market destiny and unlocking the doors to lucrative opportunities.

The regression tree appears to have more branches for the same parameters, which causes fewer branches in the classification decision tree.

The accuracy of our regression model was 59% during training; this is a good indication we got it right? When the predictions were plotted on a graph, they looked something like below:

regressor decision tree

The way predictions are fitted to the actual values, they almost look like a tree.

Author: Omega J Msigwa

 

Very informative and interesting